Graphite India, HEG shares zoom up to 11% in early trade; here’s why

Shares of electrode manufacturers Graphite India Ltd and HEG Ltd surged over 10% in an otherwise subdued market today. The rally was led by high volumes of shares traded on BSE. The demand for graphite electrodes is expected to remain strong despite a slowdown in the global economy and rising interest rates to contain inflation, said Graphite India chairman KK Bangur post Q4 earnings.  The bright outlook for the graphite electrode industry has pushed the two stocks higher in the last three sessions. While HEG stock has gained 14.25%, shares of Graphite India  have risen 12.79% in the three sessions. 

The earnings for Graphite India and HEG were announced on May 30 and May 31, respectively.  

In the current session, Graphite India stock opened higher at Rs 336.20 today. It touched an intraday high of Rs 370, rising 10.27% against previous close of Rs 335.55 on BSE. Graphite India shares are trading higher than the 5 day, 100 day and 200 day moving averages but lower than 20 day and 50 day moving averages. 

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The stock has lost 18.19% in one year and fallen 2.61% since the beginning of this year. Total 2.91 lakh shares of Graphite India changed hands amounting to turnover of Rs 10.52 crore on BSE. Market cap of the firm rose to Rs 7070.64 crore. 

Similarly, HEG shares opened higher at Rs 1195 today. The stock touched an intraday high of Rs 1315, rising 10.69% against the previous close of Rs 1188.05 on BSE. 

HEG shares are trading higher than the 5 day, 100 day and 200 day moving averages but lower than 20 day and 50 day moving averages. 

 The stock has gained 15% in one year and risen 25% since the beginning of this year. Total 0.79 lakh shares of HEG changed hands amounting to turnover of Rs 10.10 crore on BSE. Market cap of the firm rose to Rs 4962 crore. 

Graphite India reported a 69.47% fall in consolidated profit to Rs 29 crore for the fourth quarter ended March 2023 against a net profit of Rs 95 crore in the corresponding quarter of the previous fiscal. The firm reported a 3.44% fall in revenue to Rs 815 crore in the March 2023 quarter against Rs 844 crore in the March 2022 quarter. EBITDA fell 29.55% to Rs 62 crore in Q4 against Rs 88 crore in the March quarter of 2022.   

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On an annual basis, net profit slipped 60.59% to Rs 199 crore for the fiscal ended March 2023 against Rs 505 crore for the fiscal ended March 2022.  However, revenue climbed 5.12% to Rs 3181 crore in the March 2023 fiscal against Rs 3026 crore for the fiscal ended March 2022. EBITDA slipped 34.32% to Rs 312 crore in the last fiscal against Rs 475 crore in the March 2022 fiscal.   

HEG reported a 23% fall in consolidated profit to Rs 99.72 crore for the fourth quarter ended March 2023 against a net profit of Rs 129.27 crore in the corresponding quarter of the previous fiscal. The firm reported a 8.35% fall in revenue to Rs 616.88 crore in the March 2023 quarter against Rs 673.06 crore in the March 2022 quarter. EBITDA fell 21.31% to Rs 123.45 crore in Q4 against Rs 156.89 crore in the March quarter of 2022.   

On an annual basis, net profit rose 23.50% to Rs 532.36 crore for the fiscal ended March 2023 against Rs 431.05 crore for the fiscal ended March 2022. Revenue climbed 12% to Rs 2467 crore in the March 2023 fiscal against Rs 2201 crore for the fiscal ended March 2022.  

 

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