AI Summary
✦ ClarthaHEG Limited is an industrial manufacturer of graphite electrodes and a power-generation operator. Graphite electrodes, including ultra-high-power, high-power, and regular-power products, drive its core revenue. Power generation from thermal plants and a hydroelectric facility provides a separate contribution. Revenue grew 19.4% year-on-year, while profit increased 196.7%, with improving margins indicating substantial operating leverage. ROE is unavailable, while debt/equity of 16.73 implies significant leverage and potential amplification of financial risk. The earnings surge may reflect graphite-electrode profitability recovery, but leverage makes future returns more sensitive to demand and pricing cycles. At 36.1 times earnings, HEG trades at an expensive valuation relative to its recent growth rate. The stock appears overvalued, with the key open question being whether improved margins can persist despite cyclical steel demand and elevated balance-sheet leverage.
Price Forecast
Probabilistic Range
Probabilistic lognormal cone using 1Y realized volatility and analyst-target drift when available.
Revenue Forecast
₹ CrEPS Forecast
₹ / shareMulti-factor synthesis of 5 key dimensions
From 3 analysts
Fundamentals
Fundamentals institutional score is 89 using growth durability 88.9.
Valuation
Valuation institutional score is 27 using relative multiple z-scores where peer dispersion is available.
Analyst Consensus
Analyst View institutional score is 72 using mean target upside 3.9%; dispersion penalty 6.8; recommendation breadth from available consensus.
Technical Structure
Technicals institutional score is 49 using EMA-20 continuation within 5% tolerance; VCP range/volume contraction proxy.
Market Sentiment
Recent news flow is balanced or not decisive enough to tilt the tape. Based on 9 recent ticker-linked news items.
Signal Summary
Market intelligence remains Neutral. fundamentals and analyst consensus provide support, while valuation and technical structure remain considerations.
Composite weights: Fundamentals 25%, Valuation 20%, Analyst Consensus 20%, Technical Structure 20%, Market Sentiment 15%.
Key Data Points
Important Note: This is market intelligence, not investment advice. Always conduct your own research and consider your financial goals and risk tolerance.
Valuation Metrics
Trading 44.0% above historical median. Valuation is rising — currently in the strongly overvalued zone (z-score: +2.46). Confidence: 81%.
Live forward EPS implies next-12-month EPS of ₹30.13. Applying the stock's normalized valuation corridor produces a fair range of ₹630.02 to ₹844.54, with base value near ₹755.06 (+10.5% vs current price).
Live forward estimate anchored to the company's historical valuation corridor.
Forward EPS
₹30.13
Forward P/E
22.7x
Base Fair Value
₹755.06
Fair Range
₹630.02 - ₹844.54
Upside To Base
+10.5%
Estimate Source
Live forward EPS
Growth Estimate
+16.8%
5Y Average
20.67
Current
36.10
Overvalued
28.03
Undervalued
20.91
5Y Average
13.09
Current
23.18
Overvalued
17.05
Undervalued
8.56
5Y Average
2.31
Current
2.77
Overvalued
2.66
Undervalued
1.96
Peers & Comparison
Sector: Industrials · Theme: Electrical Components & Equipments
| Company | Rev. Growth | Margin | P/E | vs Avg | 52W Perf. |
|---|---|---|---|---|---|
ATLANTA ELECTRICALS LTD ATLANTAELEElectrical Components & Equipments | +48.0% | 10.9% | 55.0x Fair | -14% vs avg | +95.2% |
PRECISION WIRES INDIA LTD PRECWIREElectrical Components & Equipments | +67.1% | 2.9% | 50.6x Undervalued | -21% vs avg | +138.7% |
KAYNES TECHNOLOGY IND LTD KAYNESElectrical Components & Equipments | +42.6% | 8.9% | 68.7x Fair | +7% vs avg | -34.1% |
V-GUARD IND LTD. VGUARDElectrical Components & Equipments | +23.5% | 5.8% | 38.8x Undervalued | -39% vs avg | -11.9% |
KSH INTERNATIONAL LIMITED KSHINTLElectrical Components & Equipments | +100.5% | 3.5% | 49.1x Undervalued | -23% vs avg | +153.5% |
GRAPHITE INDIA LTD GRAPHITEElectrical Components & Equipments | +26.6% | 7.0% | 66.1x Fair | +3% vs avg | +35.7% |
OLECTRA GREENTECH LIMITED OLECTRAElectrical Components & Equipments | +43.3% | 2.0% | 63.3x Fair | -1% vs avg | -2.4% |
DIAMOND POWER INFRA LTD DIACABSElectrical Components & Equipments | +108.5% | 8.3% | 120.6x Premium | +88% vs avg | +130.5% |
HEG LTD trades at a discount (36.6x vs peer avg 64.0x), suggesting potential undervaluation relative to the Electrical Components & Equipments cohort. Peers include ATLANTA ELECTRICALS LTD, PRECISION WIRES INDIA LTD, KAYNES TECHNOLOGY IND LTD — selected based on business model, industry classification, market cap similarity, and business theme alignment.
Financials
Real statement data for revenue, earnings quality, conversion, and balance-sheet coverage. Monetary values are shown in Rs crore.
Latest revenue
₹681 CrJun 2026Latest net profit
₹110 CrJun 2026Latest EPS
₹5.67Jun 2026Net margin
24.0%Jun 2026Performance
Bars show revenue and net profit. The line shows net margin.
- Revenue
- Net income
- Net margin %
Earnings
Revenue is shown in crores. EPS is rupees per share.
- Revenue
- EPS
Revenue to profit conversion
Bridge from operating numbers to profit for the latest reported period.
Latest reported period: Jun 2026
Debt level and coverage
Debt, cash and free cash flow compared on the same crore scale.
- Debt
- Free cash flow
- Cash & equivalents
Results
| Metric | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales + | 671 | 614 | 562 | 547 | 571 | 568 | 477 | 537 | 613 | 697 | 656 | 603 | 681 |
| Expenses + | 520 | 512 | 476 | 504 | 533 | 471 | 397 | 585 | 507 | 578 | 513 | 746 | 520 |
| Operating Profit | 151 | 102 | 87 | 43 | 39 | 97 | 80 | -49 | 106 | 119 | 143 | -142 | 161 |
| OPM % | 23% | 17% | 15% | 8% | 7% | 17% | 17% | -9% | 17% | 17% | 22% | -24% | 24% |
| Other Income + | 26 | 28 | 23 | 64 | 20 | 43 | 113 | 44 | 48 | 107 | 101 | 17 | 50 |
| Interest | 9 | 9 | 10 | 9 | 8 | 9 | 9 | 12 | 8 | 9 | 9 | 11 | 10 |
| Depreciation | 38 | 38 | 47 | 50 | 48 | 48 | 51 | 55 | 53 | 54 | 54 | 53 | 50 |
| Profit before tax | 130 | 83 | 53 | 49 | 3 | 82 | 134 | -72 | 92 | 163 | 180 | -189 | 152 |
| Tax % | 25% | 26% | 30% | 28% | 21% | 25% | 26% | -14% | 22% | 20% | 22% | -14% | 28% |
| Net Profit + | 98 | 62 | 37 | 35 | 3 | 62 | 98 | -62 | 72 | 131 | 141 | -163 | 110 |
| EPS in Rs | 5.05 | 3.20 | 1.92 | 1.82 | 0.13 | 3.22 | 5.09 | -3.20 | 3.72 | 6.78 | 7.32 | -8.46 | 5.67 |
| Raw PDF |
All values in ₹ Crores unless otherwise stated. Source: Screener Master (Standalone).
Events Timeline
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
Re-Lodgement Of Transfer Requests Of Physical Shares For The Month Of July, 2026