HEG HITS UPPER CIRCUIT ON GRAPHITE ELECTRODE PRICE HIKE

Shares of Graphite India surged nearly 18% on Wednesday, September 9, while HEG Advanced Materials hit its 5% upper circuit after US-based GrafTech International announced a sharp increase in graphite electrode prices. The move raised expectations of improved realisations and margins for Indian graphite electrode manufacturers. Graphite India shares jumped 17.8% to Rs 865 in morning trade, making it the top gainer on the BSE Smallcap index and one of the most actively traded stocks across both the NSE and BSE. Shares of HEG Advanced Materials also rallied 4.99%, triggering the upper circuit. The company’s market capitalisation was around Rs 5,233 crore. The gains came despite a weak broader market. Graphite India is currently India’s only listed pure-play company focused on the graphite electrode business. Meanwhile, HEG’s graphite electrode operations are being separated into a new listed entity following the group’s recent demerger. Under the restructuring, the existing listed company, HEG Advanced Materials, will retain its advanced materials, battery energy solutions and green power businesses. The graphite electrode business will be housed under HEG Graphite, which is expected to be listed separately next month. With an annual manufacturing capacity of 80,000 tonnes, Graphite India is the largest graphite electrode producer in the country. The company also reported a strong performance in the June quarter, with net profit rising 28.4% year-on-year to Rs 172 crore. Revenue increased 26.6% to Rs 842 crore during the quarter.