Vedanta shares were raised from "Underperform" to "Buy" by overseas brokerage CLSA, with a revised price objective of Rs 390 from Rs 260. The new goal points to a 15% possible gain over Vedanta's closing price of Rs 338.20 on Tuesday. According to CNBC TV18, which cited CLSA, the Anil Agarwal-led Vedanta Ltd. is well-positioned to profit from the commodities upcycle given its broad exposure. CLSA stated that efforts to boost capacity and profitability across all categories are fruitful.
Vedanta has projected that group EBITDA will increase from $5 billion to $6 billion by FY26 and $7.5 billion by FY27. Although the company's parent Vedanta Resources has significantly reduced debt, leverage has climbed. CLSA thinks it will be important to keep an eye on Vedanta's corporate structure and debt trajectory.
According to PhillipCapital's preview note for the March quarter, Vedanta can record a sequential fall in volumes in the international divisions for aluminum, copper, and zinc. QoQ, iron ore volumes are flat, it stated.
This brokerage anticipates Vedanta to record YoY profit declines of 19.1% to Rs 2,533 crore on a 9.3% decline in sales to Rs 34,411 crore
"Vedanta is anticipated to record a 2% QoQ increase in Ebitda, led by greater volume in zinc and slightly offset by lower pricing and CoP in aluminum. A 2.5% QoQ increase in Ebitda is anticipated for aluminum. Due to its low foundation, Zinc International is anticipated to record a typical EBITDA (2x QoQ)," according to Nuvama Institutional Equities.
The shares of Vedanta have increased by 31.49% thus far in 2024. Over the course of a year, they have increased by 25%. This is despite though Trendlyne's average target price for Vedanta is Rs 292, indicating a probable 14% decline in the near future.
