Multibagger stock: HEG skyrocketed over 105% in a year, up 365% in 4 years; should you still buy?
HEG, one of the leading graphite electrode manufacturers in India, is one such stock. After experiencing a prolonged downward trend from October 2021 to March 2023, the company's shares experienced a notable rebound in the subsequent month. Since then, they have consistently followed an upward trajectory, surging from ₹920.70 to the current trading price of ₹1,902.
Also Read: Holi 2014 to Holi 2024: Nifty 50 zooms over 200%, these 14 stocks skyrocket 3,900% This remarkable turnaround has rewarded its shareholders with an impressive return of 107%. From its March 2020 low of ₹409, the shares are currently trading with a gain of 365%. HEG is a prominent entity within the LNJ Bhilwara Group, which has a diverse portfolio spanning IT-enabled services, power generation, graphite electrodes, and textiles.
It was established in 1977 and is one of the world’s leading producers of graphite electrode, specialising in sophisticated UHP (Ultra High Power) electrodes. It operates the world’s largest single-site graphite electrode plant under one roof with a capacity of 80,000 tons per year for a long time. Recently expanded to 100,000 tons, it now ranks as the third largest producer in the Western world.
Also Read: Cochin Shipyard share price soars 298% in one year; can this upside momentum continue? Domestic brokerage firm ICICI Direct Research has assigned a 'buy' rating to HEG on the back of structural demand drivers in place amid an ongoing global shift towards the EAF route of steelmaking, capacity expansion-led volume growth in the offering, and graphite anode business. The brokerage assigned a target price of ₹2,420 apiece to HEG shares, which signalled an upside potential of 27.3% from the stock's previous closing price. The
. Read more on livemint.com
