HEG Limited

HEG.BO

Hardware, Equipment & Parts · Technology

Price

₹673.85

-11.50 (-1.68%)

Market Cap

₹130.10B

Exchange

Bombay Stock Exchange

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 9, 2026 · filings through Jun 30, 2026

HEG Limited is an Indian company that makes graphite electrodes, which are large carbon rods used in electric arc furnaces to melt scrap metal into new steel. Its main customers are steel manufacturers around the world who use these electrodes in their furnaces. HEG is one of the largest graphite electrode producers in Asia and operates one of the biggest single-site electrode plants globally, located in Madhya Pradesh, India.

The company sells its graphite electrodes directly to steelmakers, earning revenue each time customers buy these industrial consumables — electrodes wear down during use and must be replaced regularly. HEG sells both in India and internationally, exporting a significant share of its output to markets in Europe, Asia, and the Americas. Its main competitive advantage is its large, low-cost integrated manufacturing facility, but the business is highly cyclical, meaning profits rise and fall sharply with global steel production levels and electrode supply-demand swings.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+14.5% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-54.5% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (15%)

Research and development spending

Insider Activity

59.7%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$18.3B cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

HEG Limited is a rare growth stock that's already generating positive cash flow while growing at 14%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

−0.0% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 193.0M (2022) → 193.0M (2026)

Score breakdown

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Quality

Gross Margin

36.3%

Modest — 36.3% gross margin

Operating Margin

16.3%

Healthy — 16.3% operating margin

ROCE

2.3%

Weak — 2.3% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+20.5%

Fast-growing sales (+20.5% YoY)

EPS YoY

+82.4%

Earnings growing fast (+82.4% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Cash Conversion

67%

Modest — 67% of profit becomes cash

FCF Margin

6.3%

Modest free cash flow (6.3%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

N/A

Data not available

Interest Cover

14.31x

Comfortably covers interest (14.3x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

36.2x

Pricey — P/E 36.2

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+12.5

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (36.2 → 23.7)

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Dividends

Dividend Yield

0.50%

Small dividend — 0.50% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

-18.4%

Dividend cut (-18.4% YoY) — warning sign

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