HEG Limited

HEG Ltd, a premier company of the LNJ Bhilwara group, is today India's leading graphite electrode manufacturer. It has one of the largest integrated Graphite Electrode plants in the world, processing sophisticated UHP (Ultra High Power) Electrodes. The company exports over 70% of its production to more than 30 countries of the world. The position the company enjoys today in India and abroad is largely due to its commitment to constant up-gradation of its product quality to match international standards and to meet new challenges to win and excel in all situations. In Graphite, their focus is on UHP grade electrodes, and they have expanded their product range and established the same on some of the toughest furnaces for their customers. Today, they have years of experience in supplying quality UHP grade electrodes all over the world. The encouragement from their customers has led them to increase production capacity and become a significant global producer of quality UHP grade electrodes for EAF application. The ability to source the best raw material from sources worldwide and the skills of human resources has been the key to the growth of the company. To maintain the competitiveness, they have set up a Captive Power Plant totaling more than 77 MW. The financials of the company looks very good, specifically for FY18 and FY19, RoCE is 137.63% and at CMP its looks reasonably priced. Fortunes of company depends on prices of Graphite Electrodes and any downside may significantly affect its profit. As on September 2018, there are 11.24% of retail share holding and reserved portion for RII will be 15%, so if all retail investors participate in Buyback, than expected acceptance ration would be 4.55%. So we give NEUTRAL rating to this buyback.

• 1 Mr. Rajesh Pirogiwal
• 2 Mrs. Sunita Pirogiwal
• 3 Miss Tanvi Pirogiwal