Graphite India: Sparking the Next Electrode UpswingNSE:GRAPHITE
Company snapshot
India’s largest graphite electrode manufacturer; also produces specialty graphite, impervious graphite equipment, GRP pipes and high-speed steel.
Capacity of ~98,000 TPA across plants at Durgapur and Nashik; Germany plant closed. Utilisation stood at ~83% in FY25.
Investing in advanced carbon technologies; announced ~25,000 TPA capacity expansion (~123,000 TPA target).
Market context
Rising share of electric-arc-furnace (EAF) steel globally supports electrode demand.
US anti-dumping duty (~93.5%) on Chinese graphite improves non-Chinese producers’ competitive positioning.
Valuation & stock stats (Oct 2025)
Share price ~₹625; 52-week range ~₹365–₹638.
Market cap ~₹122 billion; P/E ~34; P/B ~2.1; dividend yield ~1.8%.
Peer: HEG and other electrode-cycle players.
Key fundamentals
Q1 FY26 results: Total income ~₹789 crore; PAT ~₹145 crore; EBITDA ~₹200 crore.
Business mix (FY25): Graphite & Carbon ~89%; Steel ~9%; Others ~2%.
Ownership: Promoters ~65% (no pledge); FIIs ~6.6%; MFs ~7.5%; DIIs ~9.6%.
Capacity & capex
Base electrode capacity ~98,000 TPA; plan to expand by ~25,000 TPA.
Expansion capex ~₹600–650 crore; timeline yet to be fully disclosed.
Technical view
Trend: Price is above 200-day moving average (~₹559); near 52-week high.
Support zone: ~₹480–₹510–₹546.
Resistance/breakout zone: ~₹630–₹640.
Strategy: Positive momentum; consider buying on dips with support around ₹540.
Actionable watch-points
Electrode price trends and needle-coke spread (core margin driver).
Execution of the ~25,000 TPA expansion—schedule, funding, payback.
EAF steel cycle developments in India and globally.
Policy/anti-dumping updates impacting Chinese graphite supply.
Capital allocation: capex vs dividend, progress in advanced carbon tech.
Key risks
Slowdown in EAF steel or electrode demand; sharp rise in raw-material (needle coke) costs.
Reversal of favourable trade or tariff policies.
Expansion delays or weaker‐than‐expected product mix shift to lower margin grades.
Stance
Fundamental: Strong balance sheet, favorable cycle exposure, expansion potential.
Technical: Bullish bias
⚠️ Disclaimer:
This analysis is for educational and informational purposes only.
We are not SEBI-registered analysts or advisors.
This is our personal view based on available data and market trends.
Please consult your SEBI-registered investment advisor before making any investment or trading decisions.
You are solely responsible for any financial decisions you make based on this content.
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Trade Secrets By Pratik
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