NEW DELHI: Shares of HEG hit 10 per cent upper circuit on Monday to Rs 1,247.60 on NSE around 10 am (IST) and hit its fresh record high of Rs 1,247.60 in today’s trade.

The scrip extended its rally for the sixth consecutive trading session on Monday. Shares of the company jumped 40 per cent to Rs 1,247.60 on Monday from Rs 894.65 on September 28, 2017, whereas benchmark BSE Sensex has jumped 2.3 per cent during the same period.

HEG is one of the two large Graphite Electrode (GE) manufacturers in India (other is Graphite India).

According to Emkay Global Financial Services, the outlook for GE industry seems bright due to a sharp rise in prices, backed by the closure of 20 per cent of global capacity, consolidation, strong demand and sharp fall in Chinese exports. Current spot prices are above 10-year average.

HEG has GE manufacturing capacity of 80,000 tonne at a single location. Typically, it exports around 60 per cent of its output and produces both UHP and HP grade GE. It also has 76.5 MW captive power capacity.

The brokerage house said, “Backed by stronger realisations, HEG reported a strong performance in Q1FY18. We understand that the lag impact of higher realisations will improve earnings performance in the subsequent quarters.”

For the quarter ended June 30, 2017, the company narrowed down its net loss at Rs 8.43 crore against net loss of Rs 28.97 crore in the corresponding quarter last year. Net sales of the company increased to Rs 205.36 crore from Rs 166.18 crore during the same period.