JPMorgan sees 121% upside in Vedanta stock, here's why
The brokerage gave a target price of Rs 490, 121 per cent higher to the previous close of Rs 221.40 .
- Jun 27, 2022,
- Updated Jun 27, 2022 1:46 PM IST
Shares of the multinational miner Vedanta gained over 4 per cent today as investment bank JPMorgan turned bullish on the Anil Agarwal-owned firm. The brokerage gave a target price of Rs 490, 121 per cent higher to the previous close of Rs 221.40 The large cap stock opened with a gain of 2.82 per cent at Rs 227.65 today
Later, it touched an intraday high of Rs 231.15, rising 4.4 per cent on BSE. Vedanta stock is trading lower than the 5-day, 20-day, 50-day, 100-day and 200 day moving averages. The stock has fallen 13 per cent in a year and lost 32 per cent in 2022.
Total 4.73 lakh shares of the firm changed hands amounting to a turnover of Rs 10.78 crore on BSE. Market cap of the firm rose to Rs 85, 030 crore.
Share Market Live: Sensex rises 500 pts; HCL, Tech Mahindra top gainers
JPMorgan said zinc inventories have declined to multi-decade lows and Vedanta remains best positioned to play higher LME zinc prices. At spot London Metal Exchange (LME), zinc, aluminum and oil prices, implied EPS and DPS would be 10 per cent higher than the estimates by JPMorgan.
The current stock price (assuming a 10 per cent dividend yield at current market price) reflects LME zinc at $2,500 per tonne, LME aluminum at $2,300 per tonne and Brent at $80/bbl, the brokerage said.
Centrum Broking gave a target price of Rs 507 on June 3 against then price of Rs 318.9 on BSE.
The mining major reported a net profit of Rs 5,799 crore for the quarter ended March 2022, down 9.84 per cent from Rs 6,432 crore in the same quarter last year.
Revenue from operations rose to Rs 39,342, climbing 41.14 per cent from Rs 27,874 crore in the year ago quarter. The company's board also cleared first interim dividend of Rs 31.5 per equity share for the financial year 2022-23 amounting to Rs 11,710 crore.
Shares of the multinational miner Vedanta gained over 4 per cent today as investment bank JPMorgan turned bullish on the Anil Agarwal-owned firm. The brokerage gave a target price of Rs 490, 121 per cent higher to the previous close of Rs 221.40 The large cap stock opened with a gain of 2.82 per cent at Rs 227.65 today
Later, it touched an intraday high of Rs 231.15, rising 4.4 per cent on BSE. Vedanta stock is trading lower than the 5-day, 20-day, 50-day, 100-day and 200 day moving averages. The stock has fallen 13 per cent in a year and lost 32 per cent in 2022.
Total 4.73 lakh shares of the firm changed hands amounting to a turnover of Rs 10.78 crore on BSE. Market cap of the firm rose to Rs 85, 030 crore.
Share Market Live: Sensex rises 500 pts; HCL, Tech Mahindra top gainers
JPMorgan said zinc inventories have declined to multi-decade lows and Vedanta remains best positioned to play higher LME zinc prices. At spot London Metal Exchange (LME), zinc, aluminum and oil prices, implied EPS and DPS would be 10 per cent higher than the estimates by JPMorgan.
The current stock price (assuming a 10 per cent dividend yield at current market price) reflects LME zinc at $2,500 per tonne, LME aluminum at $2,300 per tonne and Brent at $80/bbl, the brokerage said.
Centrum Broking gave a target price of Rs 507 on June 3 against then price of Rs 318.9 on BSE.
The mining major reported a net profit of Rs 5,799 crore for the quarter ended March 2022, down 9.84 per cent from Rs 6,432 crore in the same quarter last year.
Revenue from operations rose to Rs 39,342, climbing 41.14 per cent from Rs 27,874 crore in the year ago quarter. The company's board also cleared first interim dividend of Rs 31.5 per equity share for the financial year 2022-23 amounting to Rs 11,710 crore.