VEDANTA SHARE JUMPS 5% TO 52-WEEK HIGH AS Q4 NUMBERS BEAT ESTIMATES

Vedanta shares surged more than 5 percent on April 26 morning, a day after the metals and mining player reported better-than-expected results for the fourth quarter.

Vedanta reported a 27 percent decline in fiscal fourth-quarter profit at Rs 1,369 crore, driven by surging finance costs and weak prices of metals such as zinc, copper, and aluminium. Revenue fell 6 percent to Rs 34,937 crore. Sequentially, revenue was little changed.

Brokerages increased their target price on Vedanta, pushing the share price higher.

At 11.10 am, Vedanta shares were quoting at Rs 393.6 on the NSE, higher by 3.3 percent from the previous session's closing price.

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"Despite marginal delays, Vedanta is set to complete its alumina, aluminium, and international zinc expansion during FY25, which will provide visibility around volume growth and cost reduction FY26 onwards," Nuvama Institutional Equities said.

The brokerage reiterated its “buy” call and bumped up the target price to Rs 542 from Rs 394.

CLSA raised the price target on Vedanta to Rs 430, while maintaining its buy “call”. The net debt reduction of Rs 6,000 on a quarterly basis as a result of lower working capital was a surprise, the brokerage said.

Commissioning on ongoing products across segments will be a key earnings driver for Vedanta, CLSA said.

Given the deleveraging plans at parent Vedanta Resources, the dividend is likely to remain elevated. Vedanta is a good play on the metals upcycle with its diversified commodity exposure along with its ongoing capacity increase projects, experts said.

The Vedanta stock has gained around 90 percent in the past six months against a 17.5 percent rise in the benchmark Nifty.

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2024-04-26T06:23:37Z dg43tfdfdgfd