| Author |
Message |
BGKGURU
Senior Member
Joined: 28/Nov/2007
Location: India
Online Status: Offline
Posts: 635
|
   Topic: HEG Ltd
Posted: 05/May/2009 at 10:45am |
Thanks to participants,I bought heg today. It is 5% of portfolio I will increase on downward. Reason for buy-
1.Expected eps-Rs.35-40 next year and 45-50 in fy11.
2.Expected dividend in next two years-Rs. 10+
3. Current year dividend-Rs. 6.5
4. Current year loss because of exchange hedging, im not aware abt future hedging if hedging at lower level then it is risk but if then can give good profit in current situation then worth to take risk at cmp.
5. They have 35% stake in Bhilwara energy. As per my info, current year profit around Rs. 120 crore. 2 year ago Bhilwara energy issued shares at valuation of 1200 crore so heg ' stake valuation around 400-450 crore. So Rs.100 per share.
Edited by BGKGURU - 05/May/2009 at 11:32am
|
|
Respect the Markets and do MAKE mistakes, but see to it that you can afford to stay in the markets even after the mistake-RJ
|
 IP Logged |
|
|
|
 |
|
BGKGURU
Senior Member
Joined: 28/Nov/2007
Location: India
Online Status: Offline
Posts: 635
|
Posted: 06/May/2009 at 5:19pm |
HEG Ltd.
Better performance, bright outlook
BUY
CMP: Rs123 Target Price: Rs161
HEG reported 4QFY09 results and FY09 results, ahead of our estimates. For 4QFY09, net sales stood at Rs2,537mn (yoy up 7.2%, qoq up 4.5%), EBITDA stood at Rs925mn (yoy up 25.6%, qoq up 4.1%) and adjusted PAT stood at Rs431mn (yoy down 12%, qoq up 59.5%). HEG reported EPS of Rs10.12. For FY09, net sales stood at Rs10.3bn (yoy up 8.8%), EBITDA stood at Rs3.76bn (yoy up 31.1%) and adjusted PAT stood at Rs1.85bn (yoy up 26.8%). HEG reported EPS of Rs43.48. During the quarter, the company reported forex loss of Rs287mn. The company has increased production cut from 12% to 35% during the quarter. HEG witnessed improvement in realization due to better product mix and increased focus towards UHP grade graphite electrodes. The expansion project of additional 20,000tpa graphite electrodes capacity has been put on hold and now the capacities will be increased only to 66,000tpa through debottlenecking, expected to be operational by mid CY09. HEG is also increasing its captive power generation capacity by 33MW, which is expected to be operational by May ’09. This will enable HEG to sell surplus power in the market. HEG is currently selling around 10MW of surplus power at a net profit of around Rs6/unit. HEG has total debt of Rs8.8bn and cash balance of Rs0.5bn. At the CMP of Rs123, the stock is trading at 2.3x FY10E EPS of Rs53.1 and at 1.6x FY11E EPS of Rs76.2. On EV/EBITDA basis, the stock is trading at 2.2x FY10E EV/EBITDA and at 1.2x FY11E EV/EBITDA; while on P/B basis the stock is trading at 0.5x FY10E book value and at 0.4x FY10E book value. We are valuing the company on P/B basis assigning target P/B multiple of 0.5x FY11E book value. We upgrade the stock from HOLD to BUY with revised target price of Rs161 (previous target price – Rs115).
Regards,
Chirag Khasgiwala
Emkay Global Financial Services Ltd.
|
|
Respect the Markets and do MAKE mistakes, but see to it that you can afford to stay in the markets even after the mistake-RJ
|
|
IP Logged |
|
|
|
BGKGURU
Senior Member
Joined: 28/Nov/2007
Location: India
Online Status: Offline
Posts: 635
|
Posted: 06/May/2009 at 5:26pm |
|
National Stock Exchange of India Ltd. Listing Department
Exchange Plaza,
Plot no. C/I, 3 mock,
Bandra-Kuria Complex
Mumbai -400 051
Tel :26598235
Fax: 26598238/37
Kind Attn: Mr. Kamlesh Patel
Subject: Daily reporting tor Buy Back Offer tot I-lEG Limited Dear Sir! Madam,
Number of Equity Shares
Name of the Sought Bsck on I T t I Average Price of
Broker __ BSE NSE H. 0 a Acquisition (Rs.)
ISharat Ehushan Nil 30,000 123.49
equity Traders
Hi4 seduritiH -. Nil H— 17,600 123 50
LLimited_____ ____ ___ ____ ___ ___ ___ ____ __ ___ __ __
Totajj8J __ .___ 17,600 ____ 30,000 li 47,600_J Total_(A)___
Lc.umulative Equity Share bou9ht as on Yesterday (B) ___.. 2,115,026
L..s:_Oupt Closed Out Today(C) __ ____ . .. J_ NIL
Closed Out as on Yesterday_(0) ,.. ____ ___
.Total.Puantc1psed_out(C+0E) ___. ,.. ___ ___ ___ NIL
Total Equ ty Shares bouqt back as on 04/06/2009 A) +(B) —_(EL.......L 2,162,626 Best Regards
Yours Faithfully,
For ICICI Securities Ltd
CCI Securities Limited
Relstered offke & Institutional Services : dcl Centre, H I Parekh March Churchgate, Mumbai 400 020, IndIa. Tel (91 22) 2288 2460/70 - ax 91 22) 2282 64B5
Member of NT.iona stock Exchange “1 India Ltd. B Bombay Siock Exchange Ltd.
Capital Market : NSE Re9n. N. NB 2:0773037, BEE Regn. No. NB 011286854
Futures frOptions NSE Regn. No. NW 230773037, RSE Regrn No. (NE 01077303b
|
|
Respect the Markets and do MAKE mistakes, but see to it that you can afford to stay in the markets even after the mistake-RJ
|
|
IP Logged |
|
|
|
BGKGURU
Senior Member
Joined: 28/Nov/2007
Location: India
Online Status: Offline
Posts: 635
|
Posted: 06/May/2009 at 5:28pm |
|
Initial buyback at Rs. 150.
|
|
Respect the Markets and do MAKE mistakes, but see to it that you can afford to stay in the markets even after the mistake-RJ
|
|
IP Logged |
|
|
|
wiseowl
Senior Member
Joined: 04/Mar/2009
Online Status: Offline
Posts: 295
|
Posted: 06/May/2009 at 11:29am |
|
Do check out their D/E. It is around 2.
|
|
You alone are responsible for your actions.
|
|
IP Logged |
|
|
|
BGKGURU
Senior Member
Joined: 28/Nov/2007
Location: India
Online Status: Offline
Posts: 635
|
Posted: 07/May/2009 at 2:10pm |
that is working capital. working capidal doesn't matter. They have Rs. 330 crore long term loan and they don't need fund for expansion so u can expect some debt repayment.
Edited by BGKGURU - 07/May/2009 at 2:10pm
|
|
Respect the Markets and do MAKE mistakes, but see to it that you can afford to stay in the markets even after the mistake-RJ
|
|
IP Logged |
|
|
|
BGKGURU
Senior Member
Joined: 28/Nov/2007
Location: India
Online Status: Offline
Posts: 635
|
Posted: 07/May/2009 at 2:18pm |
|
|
|
Respect the Markets and do MAKE mistakes, but see to it that you can afford to stay in the markets even after the mistake-RJ
|
|
IP Logged |
|
|
|
Shadofax
Senior Member
Joined: 27/Nov/2007
Location: India
Online Status: Offline
Posts: 193
|
Posted: 28/Dec/2010 at 10:19am |
|
This stock is available at a trailing PE of 6. Return Ratios, Div Payout and div yield, Profitability ratios look quite good. Promoter holding is quite decent.
I have just looked at the numbers as of now.
Anyone having idea about this business ... please highlight the important things to be viewed.
|
|
$
|
|
IP Logged |
|
|
|
Active Topics
Memberlist
Calendar
Search
Help
Register
Login
