Here is why Vedanta shares are rising today
Vedanta shares climbed 5.63 per cent to hit high of Rs 357.25. At this price, CLSA's target price still suggests a 9.16 per cent potential upside ahead.
- Apr 10, 2024,
- Updated Apr 10, 2024 9:45 AM IST
Vedanta Ltd shares climbed nearly 6 per cent in Wednesday's trade, thanks to a sharp increase in its price target by foreign brokerage CLSA, which now finds the stock worth a 'Buy' against its 'Reduce' rating earlier. CLSA has increased its target price on Vedanta to Rs 390 from Rs 260, citing commodity upcycle.
Following the development, the Vedanta stock climbed 5.63 per cent to hit high of Rs 357.25. At this price, CLSA's target price still suggests a 9.16 per cent potential upside ahead.
The metals & mining major Ltd is well-placed to benefit from commodity upcycle given its diversified exposure, CNBC TV18 quoting a CLSA report suggested. Efforts to increase capacity and profitability across segments auger well, the report added.
Vedanta shares are up 41.47 per cent year-to-date. They are up 34.86 per cent for the one-year-period. This is even as the average target price on Vedanta stands at Rs 292, as per Trendlyne, suggesting a 14 per cent potential downside ahead.
Vedanta has guided for group Ebitda to rise to $6 billion by FY26 and $7.5 billion by FY27 from $5 billion. While the parent Vedanta Resources has cut debt substantially, leverage at the company has increased. CLSA believes that Vedanta's leverage trajectory and corporate structure will be key to watch.
In its March quarter preview note, PhillipCapital said Vedanta may report a sequential decline in volumes in Aluminium, Copper and Zinc International segments. Iron ore volumes remains flat QoQ, it said.
This brokerage expects Vedanta to report a 19.1 per cent YoY fall in profit at Rs 2,533 crore on 9.3 per cent drop in sales at Rs 34,411 crore.
"Vedanta is expected to report an Ebitda uptick of 2 per cent QoQ driven by higher volume in zinc, offset marginally by prices and lower CoP in aluminium. Aluminium is expected to report an Ebitda uptick of 2.5 per cent QoQ . Zinc international is expected to report a normal Ebitda (2x QoQ due to low base)," said Nuvama Institutional Equities.
Vedanta Ltd shares climbed nearly 6 per cent in Wednesday's trade, thanks to a sharp increase in its price target by foreign brokerage CLSA, which now finds the stock worth a 'Buy' against its 'Reduce' rating earlier. CLSA has increased its target price on Vedanta to Rs 390 from Rs 260, citing commodity upcycle.
Following the development, the Vedanta stock climbed 5.63 per cent to hit high of Rs 357.25. At this price, CLSA's target price still suggests a 9.16 per cent potential upside ahead.
The metals & mining major Ltd is well-placed to benefit from commodity upcycle given its diversified exposure, CNBC TV18 quoting a CLSA report suggested. Efforts to increase capacity and profitability across segments auger well, the report added.
Vedanta shares are up 41.47 per cent year-to-date. They are up 34.86 per cent for the one-year-period. This is even as the average target price on Vedanta stands at Rs 292, as per Trendlyne, suggesting a 14 per cent potential downside ahead.
Vedanta has guided for group Ebitda to rise to $6 billion by FY26 and $7.5 billion by FY27 from $5 billion. While the parent Vedanta Resources has cut debt substantially, leverage at the company has increased. CLSA believes that Vedanta's leverage trajectory and corporate structure will be key to watch.
In its March quarter preview note, PhillipCapital said Vedanta may report a sequential decline in volumes in Aluminium, Copper and Zinc International segments. Iron ore volumes remains flat QoQ, it said.
This brokerage expects Vedanta to report a 19.1 per cent YoY fall in profit at Rs 2,533 crore on 9.3 per cent drop in sales at Rs 34,411 crore.
"Vedanta is expected to report an Ebitda uptick of 2 per cent QoQ driven by higher volume in zinc, offset marginally by prices and lower CoP in aluminium. Aluminium is expected to report an Ebitda uptick of 2.5 per cent QoQ . Zinc international is expected to report a normal Ebitda (2x QoQ due to low base)," said Nuvama Institutional Equities.