HEG, Graphite India hit new high on expectations of robust Q1 results

Thus far in the calendar year 2018, HEG (up 67%) and Graphite India (45%) has outperformed the market by surging more than 40% as compared to 6% rise in the S&P BSE Sensex.

Shares of graphite electrode players -- Graphite India (up 4% at Rs 1,027 per share) and HEG (up 3% at Rs 3885 per share) hit their respective new highs on the BSE in intra-day trade on expectations of continuous healthy performance by these companies on the back of increasing realisations.

“We expect companies to report a robust EBITDA (earnings before interest, tax, depreciation and amortization). HEG and Graphite India are likely to report strong EBITDA margins of 66.7% and 63.5%, respectively during April-June quarter (Q1FY19),” ICICI Securities said in result preview.

The brokerage firm expects HEG to continue