Graphite India, HEG surge; Macquarie sees more steam

HEG Advanced Materials

29/06/2018 05:04

** Shares of Graphite India Ltd  GRPH.NS  and HEG Ltd
 HEGL.NS  jumps as much as 5 pct each to 840 rupees and 3,310.5
rupees respectively
    ** Graphite India posts biggest intraday pct gain since May
29, while HEG is on track to gain for a 2nd straight session
    ** Macquarie starts coverage on graphite product makers HEG
and Graphite India with 'outperform' ratings
    ** Macquarie sets TP of 1,260 rupees for Graphite, implying
58 pct upside; sets TP of 4,810 rupees for HEG, implying 53 pct
upside
    ** Macquarie says graphite electrode (GE) market should
remain tight with constraints across the supply chain
    ** Adds expect current GE price strength and margins to
sustain for longer
    ** Adds with no substitute, growing demand and limited new
supply, GE is now more a 'strategic resource' than a 'commodity'
    ** HEG, with 10 pct global market share, is on solid footing
and Graphite India, with 12 pct global market share, is well
placed - Macquarie 
    ** Graphite India has risen nearly 13 pct this year up to
Thursday's close versus a 35 pct gain for HEG 

 ((Reuters Messaging:
vishal.sridhar.thomsonreuters.com@reuters.net))