HEG shares gain as much as 12% after strong Q2, snap five-day losing streak

Shares of HEG Ltd. surged as much as 12% on Tuesday, November 11, after the graphite electrode maker reported strong earnings for the September quarter.

The stock rebounded sharply after taking support near its 50- and 100-day moving averages around ₹520, snapping a five-day losing streak.

Earlier, it had gained for eight consecutive sessions. Trading activity was robust, with around 87 lakh shares changing hands, compared to the 20-day average of 4.5 lakh shares.

The company's net profit rose 72.7% year-on-year to ₹143 crore, while revenue grew 23.2% to ₹699.2 crore. EBITDA increased to ₹118.4 crore from ₹96.3 crore a year ago, with margins steady at 17%.

HEG said its other income benefited from a rise in the fair value of investments in Graftech, resulting in mark-to-market gains of ₹86.2 crore, up from ₹48.07 crore last year.

Separately, the company's board approved a ₹633-crore subscription to Optionally Convertible Debentures (OCDs) issued by its wholly owned subsidiary TACC Ltd. The funds will be used for research and development, business expansion, and capex.

The stock remains positive on a year-to-date basis.