This company has just turned profitable after posting a loss for the last few quarters. Reacting to its March quarter earnings, the stock of the company rallied over 9 per cent in Wednesday's trade. The stock has, in fact, delivered a healthy return of nearly 1000 per cent in the last one year and a whopping 1580 per cent jump in the last five years, making investors richer beyond their dreams. To put the percentage in perspective, Rs 1 lakh invested in this graphite electrode maker has turned into Rs 16 lakh in the last five years. By comparison, the Sensex advanced just 76 per cent.

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The stock is none other than HEG, the best performing stock of 2017. Experts still see more upside on HEG with one brokerage estimating a target price of Rs 5,010, an upside of 58 per cent from Wednesday's closing level of Rs 3174.25.  

The graphite electrode maker reported a net profit of Rs 634.01 crore for the March quarter of financial year 2017-18. The profit comes against a net loss of Rs 3.42 crore in the same quarter of FY17. 

Revenue from operations climbed 383.71 per cent year-on-year to Rs 1,292.45 crore during the quarter under review. The figure came in at Rs 267.19 crore in the corresponding quarter of the previous year. 

Global brokerage Jefferies maintained a buy rating on the stock with a target price of Rs Rs 3,622, an upside of 23.31 per cent. 

"Recent commentary on tightness in supply demand from Graftech and upside revision in revenue guidance in Q1 itself by Tokai Carbon outlines strong fundamental outlook for the industry. We keep our BUY with TP of Rs 3,622 (5.5x FY20E EV/EBITDA)," said Jefferies in a results review note.

SKP Securities believes HEG is well positioned to capitalize on the positive structural changes witnessed by the GE industry, leading to a sustainable boom, at least till FY20. 

"We have valued the stock on SOTP basis valuing HEG’s core GE business at 5x FY20E EV/EBITDA, reducing it from 6x in previous quarter, pending clarity on industry prospects beyond FY20 and effective use of surplus cash generated. We have given a 50% discount to its stake in BEL (Bhilwara Energy Limited). We recommend a BUY on the stock with a target price of Rs 5,010 in 18 months," said the brokerage. 

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Decline in electrode prices, China re-starting its induction furnace capacity for steel production, limited supply of needle coke and adverse currency movements are some of the risks that could pose a threat to stock's rally.