Is HEG the Best Stock in Its Sector? A Look at the Numbers
- September 28, 2026
- Posted by: Harsh Piplani
- Category: Market
HEG CMP Rs 239 (28 Sep 2026). Market cap Rs 4,711 Cr. ROE 7.17%. P/E 13.12x versus Industry P/E 47.65x.
Quick Answer
HEG is one of the names investors compare when screening the Capital Goods sector, built on a 7.17% return on equity and a P/E of 13.12x against an Industry P/E of 47.65x. Whether HEG is the best stock in its sector depends on whether an investor is optimising for return ratios, valuation, or both. This article breaks down the metrics, including a comparison against named Capital Goods sector peers, so you can judge that for yourself.
Is HEG the best stock in its sector? The stock trades on the NSE at Rs 239 as of 28 September 2026, within its 52-week range of Rs 168.09 to Rs 273.00. HEG Ltd, now trading as HEG Advanced Materials, manufactures graphite electrodes for electric arc furnace steelmakers.
HEG sits in the Capital Goods sector, and its 7.17% ROE and 13.12x P/E give a starting point for judging where it stands against comparable listed names. The rest of this article compares those numbers against verified peers and the sector’s Industry P/E benchmark.
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About HEG
HEG Ltd, now trading as HEG Advanced Materials, manufactures graphite electrodes for electric arc furnace steelmakers. The stock is trading in the upper half of its 52-week range. At a market capitalisation of Rs 4,711 Cr, it is tracked as part of the Capital Goods sector on Univest.
Is HEG the Best Stock in Its Sector?
HEG makes its case as the best stock in its sector primarily on valuation relative to its Industry P/E, combining a 7.17% ROE with a 13.12x P/E against the sector’s 47.65x Industry P/E. HEG’s 13.12x P/E is far below the 47.65x Industry P/E, but its 7.17% ROE is modest and graphite electrode prices are cyclical, so the low multiple reflects thin current returns.
| Metric | HEG |
|---|---|
| CMP (NSE) | Rs 238.75 |
| 52-Week High / Low | Rs 273.00 / Rs 168.09 |
| Market Cap | Rs 4,711 Cr |
| P/E (TTM) vs Industry P/E | 13.12x vs 47.65x |
| P/B | 0.99 |
| ROE | 7.17% |
| EPS (TTM) | Rs 18.60 |
| Dividend Yield | 1.39% |
| Debt to Equity | 0.17 |
Compare HEG Against Other Capital Goods Sector Stocks
How HEG Compares Against Its Capital Goods Sector Peers
The table below sets HEG against 2 other Capital Goods sector names, using the same live data source for every company. A peer average row is included for P/E, ROE and debt to equity, calculated across the 2 peer companies.
| Company | Market Cap (Rs Cr) | P/E | ROE | Debt to Equity |
|---|---|---|---|---|
| HEG | 4,711 | 13.12 | 7.17% | 0.17 |
| Elecon Engineering Company | 10,309 | 43.67 | 14.79% | 0.12 |
| Diffusion Engineers | 1,645 | 29.99 | 12.42% | 0.07 |
| Peer average (2 companies) | – | 36.83 | 13.61% | 0.10 |
Against this peer set, HEG’s 7.17% ROE is below the 13.61% peer average, and its P/E of 13.12x runs below the peer average of 36.83x. HEG’s 13.12x P/E is far below the 47.65x Industry P/E, but its 7.17% ROE is modest and graphite electrode prices are cyclical, so the low multiple reflects thin current returns.
What Makes HEG Worth Watching in Capital Goods
- Well below Industry P/E and near book value: A 13.12x P/E against a 47.65x Industry P/E, alongside a P/B of 0.99, means the stock trades at about its own book value.
- Low leverage: A debt to equity ratio of 0.17 is comfortable for a capital intensive business.
- Dividend yield: A 1.39% dividend yield adds a modest income component.
HEG Valuation: Is It Justified?
HEG’s 13.12x P/E is far below the 47.65x Industry P/E, but its 7.17% ROE is modest and graphite electrode prices are cyclical, so the low multiple reflects thin current returns. As with any single stock, investors should weigh this against their own valuation discipline and risk appetite rather than the sector label alone.
Also read – Is Godrej Agrovet the Best Stock in Its Sector? A Look at the Numbers
Download the Univest iOS App or Univest Android App to track HEG and other Capital Goods sector stocks.
How to Track HEG Before You Invest
Before deciding whether HEG deserves its label as the best stock in its sector for your own portfolio, compare it directly against Capital Goods sector peers using the steps below.
- Open the Univest Screener and search for HEG to view live price, valuation ratios, and peer comparisons within the Capital Goods sector.
- Compare its P/E, P/B, and ROE against other Capital Goods sector stocks before deciding if the current valuation fits your strategy.
- Set a price alert around key support and resistance zones using the Univest app so you are notified of meaningful moves.
- Open a broking account on Univest if you decide to add the stock, and size the position based on your own risk appetite and portfolio allocation.
Conclusion
HEG earns a place in the best stock in its sector conversation on the strength of a 7.17% ROE and a P/E of 13.12x against a 47.65x Industry P/E, with named peer comparisons in this article backing up that picture. As with any individual stock decision, this analysis is educational and investors should do their own research or consult a SEBI-registered advisor before investing.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Is HEG the best stock in its sector?
Ans. HEG has a 7.17% ROE and trades at 13.12x P/E against a 47.65x Industry P/E, and compares below the peer average ROE of 13.61% in this article’s named comparison, so the answer depends on what an investor is prioritising.
What is the current share price of HEG?
Ans. HEG was trading at Rs 238.75 on the NSE as of 28 September 2026, within its 52-week range of Rs 168.09 to Rs 273.00.
What sector does HEG belong to?
Ans. HEG is classified under the Capital Goods sector on Univest.
How does HEG compare to its sector peers on P/E?
Ans. HEG’s P/E of 13.12x is below the 36.83x average of the 2 named peers compared in this article.
What is HEG’s return on equity?
Ans. HEG reported a return on equity of 7.17%, which is below the 13.61% average of its named peers in this comparison.
Should I invest in HEG based on its sector position?
Ans. HEG’s sector position and metrics make it worth researching further, but any investment decision should factor in your own risk appetite, its valuation relative to peers, and independent research or advice from a SEBI-registered advisor.
