HEG Advanced Materials Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

HEG Advanced Materials Ltd trades at ₹244, in a confirmed uptrend and 74 weeks into that stage. That is +11.7% against its own 200-day average. It sits at 22% of a 52-week range of ₹237 to ₹270. On relative strength it has no relative-strength read yet.

Today the stock is in a confirmed uptrend — week 74 of stage 2, confirmed. At ₹244 it trades +11.7% versus its 200-day average and sits at 22% of its 52-week range (₹237–₹270).

Against the market, two honest reads. Cumulative: over the last 1 months the stock moved −1% while the NIFTY 500 moved −5% — ahead of the index over the full window. Recent form: no trailing-13-week read yet — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

HEG Advanced Materials Ltd trades at 13.3× P/E, at the pricey end of its own range (70th percentile). Its long-run median P/E is 5.9×, measured across 10.0 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 13.3× is at the pricey end of its own range (70th percentile), against a long-run median of 5.9× measured over 10.0 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

The PEG ratio, which only the second data source carries, is not drawn on this page: its two data sources do not share enough overlapping reported history to be compared. A figure nobody could check is not used to price growth — the gap is a decision, not missing data.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

HEG Advanced Materials Ltd reads as mixed on its fundamental arc. Mixed — growth is normalizing off a hyper-growth base: profit growth has eased from +100.0% at its peak to +16.2% (single-quarter readings) but is still expanding, ROCE holding at 8.0%. The read is built from 9 quarters across 3 curves, on partial evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

Revenue Revenue is the top line: everything the company billed its customers in the period.

HEG Advanced Materials Ltd reported ₹681 Cr of revenue in the Jun 26 quarter, +11.1% year on year. That is the 5th straight quarter of year-on-year growth. Over 10 years it has compounded at 11.4% a year. The last full year, FY26, came in at ₹2,568 Cr. The last four reported quarters add to ₹2,639 Cr.

FY26 revenue came in at ₹2,568 Cr (+19.4% on the year), capping 10 years at 11.4% compound. The latest quarter (Jun 26) printed ₹681 Cr, +11.1% year on year — the 5th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +20.9% growth against the decade's 11.4% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +20.2% over the last 4 quarters against +7.3%/yr over the last 8 — accelerating; TTM profit +82.7% vs +35.1%/yr — accelerating.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

HEG Advanced Materials Ltd's operating margin is 22.0% in the Jun 26 quarter, +5.0 percentage points against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged −4.2% to 71.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 22.0%, +5.0 pp against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged −4.2%–71.0%.

Why the margin moved: operating margin went +4.9 pp year on year while gross margin went +5.9 pp — the gain came mostly from the gross line: input costs and pricing.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

HEG Advanced Materials Ltd earned ₹122 Cr of net profit in the Jun 26 quarter, +16.2% year on year. Full-year FY26 profit was ₹341 Cr. The 10-year compound rate is 56.0%. That is 17.9% of the quarter's revenue. The same quarter a year earlier earned ₹105 Cr. 2 of the last 12 reported quarters were loss-making.

Jun 26 profit was ₹122 Cr, +16.2% year on year. On the full year, FY26 printed ₹341 Cr (+196.5%), and the 10-year compound rate is 56.0%.

Why profit moved: revenue contributed +11.1% and the margin +5.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +80.0% vs revenue +20.9%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 144% of HEG Advanced Materials Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹213 Cr of operating cash against ₹341 Cr of profit. After ₹216 Cr of capital spending, ₹−3.0 Cr was left as free cash.

FY26: operating cash of ₹213 Cr against reported profit of ₹341 Cr, leaving free cash of ₹−3.0 Cr after ₹216 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 144% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 144%: the cash cycle stretched 93 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: no single sink dominates — the next section checks both the working-capital cycle and the capital spending.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

HEG Advanced Materials Ltd's cash conversion cycle runs 323 days in FY26, up from 230 days in FY21. Capital spending ran ₹766 Cr over the last 3 years. At FY26 sales of ₹2,568 Cr each day of that cycle holds about ₹7.0 Cr, so roughly ₹2,273 Cr sits inside the business at any moment.

FY26: debtors at 71 days, inventory at 389 days — roughly 12.8 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 323 days, looser than FY21's 230.

The full loop: cash goes out to suppliers and production on day 0; stock waits 389 days to sell; customers pay about 71 days after that; and suppliers themselves are paid at 138 days — netting out to the 323-day cycle.

In money terms: at FY26 sales of ₹2,568 Cr, each day of the cycle holds about ₹7.0 Cr — so the 323-day loop keeps roughly ₹2,273 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹766 Cr over the last 3 fiscal years against ₹589 Cr of depreciation — building somewhat ahead of wear-and-tear. Capital work-in-progress stands at ₹224 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: neither the cycle nor the build-out is hoarding the cash — the machine is reasonably clean.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

HEG Advanced Materials Ltd earns a ROCE of 8% in FY26. That is up from a trough of −2% in FY21. Return on invested capital clears the cost of that capital by −6.1 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 13.3% net margin on 0.42× asset turns.

FY26 ROCE is 8%, recovered from a FY21 trough of −2% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): 13.3% net margin × 0.42× asset turns × 1.30× balance-sheet leverage ≈ 7.3% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 5.9% − 12.0% = a −6.1 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

HEG Advanced Materials Ltd carries ₹796 Cr of borrowings against ₹4,758 Cr of equity in FY26, a debt-to-equity of 0.17. Operating profit covers the interest bill 11×. Over 5 years borrowings went from ₹298 Cr to ₹796 Cr. Capital spending ran ₹766 Cr across the last 3 of those years.

FY26: borrowings of ₹796 Cr against equity of ₹4,758 Cr — a debt-to-equity of 0.17. Operating profit covers the interest bill 11×. Over 5 years borrowings went from ₹298 Cr to ₹796 Cr while capital spending ran ₹766 Cr in just the last 3 — part of the build-out is riding on borrowed money.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Promoters added 4.9 points of HEG Advanced Materials Ltd over 8 quarters, the biggest move on the register. That takes promoters to 60.7% of the company. Foreign institutions moved −1.6 points over the same window, to 5.3%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: +4.9 points over 8 quarters to 60.7%; Foreign institutions: −1.6 points over 8 quarters to 5.3%; Domestic institutions: +0.0 points over 8 quarters to 12.8%.

Why the register moved: promoters drove it (+4.9 points), absorbed on the other side by foreign institutions (−1.6 points) — steady accumulation by institutions reading the same numbers this page reads.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

HEG Advanced Materials Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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