HEG Limited
HEG Limited Fundamental Analysis
HEG Limited (HEG.NS) shows weak financial fundamentals with a PE ratio of 29.30, profit margin of 15.17%, and ROE of 8.47%. The company generates $25.1B in annual revenue with weak year-over-year growth of -9.90%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HEG.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakHEG.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateHEG.NS shows balanced valuation metrics.
Growth Score
WeakHEG.NS faces weak or negative growth trends.
Financial Health Score
ExcellentHEG.NS maintains a strong and stable balance sheet.
Profitability Score
WeakHEG.NS struggles to sustain strong margins.
Key Financial Metrics
Is HEG.NS Expensive or Cheap?
P/E Ratio
HEG.NS trades at 29.30 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HEG.NS's PEG of 0.61 indicates potential undervaluation.
Price to Book
The market values HEG Limited at 2.40 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 14.86 times EBITDA. This signals the market has high growth expectations.
How Well Does HEG.NS Make Money?
Net Profit Margin
For every $100 in sales, HEG Limited keeps $15.17 as profit after all expenses.
Operating Margin
Core operations generate 27.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.47 in profit for every $100 of shareholder equity.
ROA
HEG Limited generates $6.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
HEG Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
HEG Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
HEG.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.30
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.61
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.44
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.41
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How HEG.NS Stacks Against Its Sector Peers
| Metric | HEG.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.30 | 26.71 | Neutral |
| ROE | 8.47% | 1311.00% | Weak |
| Net Margin | 15.17% | -29317.00% (disorted) | Strong |
| Debt/Equity | 0.14 | 0.75 | Strong (Low Leverage) |
| Current Ratio | 2.41 | 10.53 | Strong Liquidity |
| ROA | 6.42% | -1537638.00% (disorted) | Weak |
HEG.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews HEG Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
1.98%
Industry Style: Cyclical, Value, Infrastructure
GrowingEPS CAGR
70.07%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-62.15%
Industry Style: Cyclical, Value, Infrastructure
Declining