HEG, Graphite gain up to 3% in subdued market; brokerages see more upside

HEG, Graphite India share price today

 

Shares of graphite electrodes (GE) companies HEG and Graphite India gained up to 3 per cent on the BSE in Friday’s intra-day trade in an otherwise subdued market on healthy business outlook.

 

HEG share price was up 3 per cent at ₹567.95 in intra-day trade. The stock had hit a 52-week high of ₹622 on July 31, 2025. Share price of Graphite India was up 2 per cent at ₹583.50. It had hit a 52-week high of ₹651.25 on October 30, 2025. In comparison, the BSE Sensex was down 0.23 per cent at 85,208 at 10:58 AM.  CATCH STOCK MARKET UPDATES TODAY LIVE

Graphite electrodes outlook

 

The graphite electrode market continues to face challenging conditions. Customer demand remained muted due to cautious procurement and aggressive export pricing by Chinese suppliers, which intensified margin pressure for producers globally. The recent imposition of 50 per cent reciprocal duty in the US poses a potential headwind to our competitiveness in that region, HEG said in its Q2 earnings conference call on November 12, 2025. However, the management hopes that tariffs will settle down to a more reasonable level in coming times.

 

The electrode prices have remained flattish between Q2 and Q1 and so have the needle coke prices. HEG hopes that in two, three quarters, steel production starts to increase and the new electric arc furnace capacities start coming on stream in the next one to two years.

 

The global transition towards low-emission electric arc furnace steelmaking continues to accelerate, driven by climate goals and regulatory momentum. This transition is expected to generate substantial incremental demand, and the management estimated at approximately 200,000 tons of graphite electrodes by 2030, excluding China, reinforcing the industry's long-term potential.  ALSO READ | RVNL, IRFC, IRCTC: Railway stocks rally up to 10% in trade; here's why

Brokerages see more upside in HEG, Graphite India stock prices

 

Technical analyst at ICICI Securities has a ‘Buy’ rating on HEG with a target price of ₹592 and stop loss at ₹524. The falling trendline breakout and elevated buying demand above the 50-day signals, resumption of an up move and fresh entry opportunity, brokerage firm said.

 

Analysts at Emkay Global Financial Services on December 12 initiated coverage on the Indian graphite electrode sector with BUY on both Graphite India and HEG, assigning target price of ₹700 to each. 

 

The graphite electrode sector is in a Darwinian reset - a deep trough forcing consolidation, exposing weak cost positions, and realigning supply. As the steel cycle stabilizes, survivors enter the next upcycle with cleaner balance sheets, firmer procurement discipline, and structurally higher earnings resilience. This is a rare moment of cyclical weakness creating a long-duration opportunity. 

 

Graphite India and HEG are well-positioned to lead the next global cycle - one that is forming through China’s anti-involution shift, Europe’s CBAM (Carbon Border Adjustment Mechanism), rollout, and a globally coordinated policy resolve aimed at lifting the steel industry out of a prolonged downturn through rising protectionism, the brokerage firm said.

 

According to analysts, Graphite India enters a trough with the sector’s cleanest balance sheet, conservative capital philosophy, and a cost structure built for stability rather than peak-cycle capture. It may not offer the highest beta, but it is the least disrupted—able to absorb prolonged weakness without compromising strategic optionality.   ALSO READ | Is Northern Arc your next growth stock? Ambit says 'Buy', 30% upside eyed 

HEG, by contrast, carries more operating leverage, reflecting a business model historically geared to cycle amplitude. Yet, this structure gives it disproportionate upside if the supply tightening thesis plays out and the cycle turns. 

 

The contrast is instructive - Graphite India survives because it can wait; HEG survives because it moves fastest when the upcycle arrives. Both are positioned to benefit, but for different reasons - and in a thinning industry, both models have value, analysts said.  =======================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.