HEG stock has moved up 53% from Nov 5 and has gained 12% since Dec 16 with the volumes rising 1.67 times.
Trading Delight
Volume 1.67 times higher than 5 day simple moving average
Trading above 5, 10 and 20 day moving average
Delivery fell to 10.93% from 3 month average of 50.17%
Delivery Pattern
22 dec 10.93%
21 dec 9.12%
18 dec 6.5%
17 dec 25.21%
3 mth avg 50.10%
Volume
(fig in Lakh)
Volume 15 day avg vol
22 Dec 1.21 0.72
21 Dec 3.58 0.67
18 Dec 2.34 0.45
17 Dec 2.00 0.30
Demand Environment
Outlook for co seem to be improving with better visibility of volumes
Mgmt more optimistic for its FY 10 volume
Currently has 50-55% order book, which was certain to achieve few mth back
Capacity Utilisation
Currently operating at 60-65% capacity utilization
Expects to increase it to 70-75% in the latter part of the financial year
Realisation Picture
Gaining from higher realizations for graphite electrode
Reduction in raw material costs except for needle coke will increase realization
Entire cost hike of needle coke is getting passed
Maintain FY09 profitability or slightly increase
Expected to make additional profits from the sale of surplus power in the merchant market
Power sales is expected to generate additional profits of Rs33.4 cr in FY10
35% production cut enables the company to sell surplus power in the merchant market
Expansion Plan
Not done any employee addition in increasing its capacities from 30,000tpa to 60,000tpa
To increase its capacities to 80,000tpa by CY11-12
Process of increasing graphite electrode capacities to 66,000tpa by Dec’09 by at a capex of Rs42 cr
