Key graphite electrode players HEG and Graphite India rose up to 8 per cent today morning, marking their rally for the fourth straight session.HEG was trading higher 8 per cent after the company on Tuesday posted a net profit of Rs 634.01 crore for the March quarter against a net loss of Rs 3.42 crore in the same period last year.
Its revenue from operations climbed 383.71 per cent year-on-year to Rs 1,292.45 crore during the quarter under review.
The figure stood at Rs 267.19 crore in the same quarter last year.Global brokerage firm Jefferies maintained Buy on HEG with a target price of Rs 3,622.
Noting strong fundamental outlook as also outlined by Tokai Carbon Graftech recently, Jefferies said.
HEGs board of directors also recommended a final dividend at Rs 50 per share for 2017-18 (exclusive of dividend distribution tax), which shall be paid within 30 days from the conclusion of the AGM, subject to the approval of shareholders.Shares of Graphite India were up nearly 5 per cent at Rs 767 at around 10.40 am (IST) whereas BSE Sensex was almost flat at 35,226.Graphite India will announce its financial results for January-March on Friday.Any decline in electrode prices and China re-starting its induction furnace capacity for steel production pose key risks for graphite electrode players in India.