HEG share price surges 6% to touch 52-week high amid ₹172 crore block deal news | Stock Market News
Source: Live Mint
HEG share price soared over 6% in Thursday’s trading session, hitting a 52-week high. This remarkable rise was fuelled by the news of a block deal valued at ₹172 crore, according to Moneycontrol. HEG share price today opened at ₹589.90 apiece on the BSE, the stock touched an intraday high of ₹619.25 and an intraday low of ₹573.80 per share.
Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One highlighted that the HEG share price had seen a vertical run in the last three sessions, gaining more than 36%. While the momentum remains on the positive side, indicators are in the overbought zone; existing longs can be held for an extended up move of 640, whereas fresh longs should be avoided. A dip should be considered a buy with 570 as support.
Further, Moneycontrol’s news report indicates that approximately 2.88 million shares of HEG, which represent a 6% stake in the company, were traded on the exchanges at an average price of ₹600 per share. Notably, the floor price for this block deal is set at over a 3% premium compared to the closing price of the stock on Wednesday.
On Wednesday, HEG share price garnered significant attention following a decisive announcement from China’s Ministry of Commerce. The ministry declared an outright ban on several critical materials essential for chip-making intended for export to the United States. This ban was implemented due to serious concerns regarding potential military applications.
Market experts believe that the Chinese government’s decision will benefit Indian companies. Since China is the world’s largest exporter of graphite, the market expects a significant increase in business for Indian companies as a result of this decision.
According to the company’s Q2 earnings call release, for the quarter ended September 30, 2024, HEG reported revenue from operations of ₹568 crores, compared to ₹614 crores in the same quarter of the previous financial year.
During the quarter ending September 30, 2024, the company reported an EBITDA of ₹140 crores, compared to ₹130 crores during the same quarter last year.
The company reported a net profit after tax of ₹62 crores for Q2 FY25, which is the same as the ₹62 crores recorded in the corresponding quarter of the previous year. On a consolidated basis, the net profit after tax for Q2 FY25 is ₹82 crores, compared to ₹96 crores in the same quarter of the previous financial year. The company is free of long-term debt and had a treasury size of approximately ₹923 crores as of September 30, 2024.
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