HEG zooms 20% after BofAML initiates coverage with 'Buy' rating

The stock is locked in upper circuit of 20% at Rs 3,871 on the BSE after Bank of America Merrill Lynch initiated coverage of the stock with a 'Buy' rating price objective of Rs 6,700.

Shares of graphite electrode manufacturer HEG are locked in upper circuit of 20% at Rs 3,871 per share on the BSE after Bank of America Merrill Lynch (BofAML) initiated coverage of the stock with a 'Buy' rating.

The brokerage firm set price objective of Rs 6,700 - an upside potential of 108% against its Tuesday’s closing price of Rs 3,226, plus an 8.5% forecast dividend yield.

“HEG has seen a significant rise in profitability over the last 12 months as graphite electrode (GE) prices have risen fivefold. Chinese limits on steel production and efforts to cut pollution are lifting