Vedanta Ltd. share price target

Restructuring business adds to uncertainties at peak LME Vedanta reported all-time high EBITDA at INR107b (YoY up 38%, QoQ up 4%) driven by record-high LME. However, it was short of our estimate of INR121b due to a 47% QoQ rise in power and fuel costs. The sharp rise in aluminum CoP explains the large part of the EBITDA miss; it also highlights the cost reduction in the Aluminum business was not entirely structural but also driven by lower coal prices. The company declared dividend of INR13.2/sh....

Vedanta Limited is a natural resource company.

Growth capex commitment to provide comfort on capital allocation Vedanta (VEDL)'s 1QFY22 result highlights the benefit of higher commodity prices, as EBITDA rose 9% QoQ to INR98.7b, the highest ever. Net debt/EBITDA also declined to 0.6x, the lowest in the last four years. The management's intention to service the holding company's debt by way of dividend payments provides comfort on the capital allocation and should lead to higher dividend payouts. Moreover, the announced growth...

With respect to the oil and gas business, in Q4FY21 average daily gross operated production was at 165 kboepd compared to 160 kboepd in Q3FY21. Operating cost during Q4FY21 was at US$9/boe compared to US$7.7/boe in Q3FY21. The increase in CoP was primarily due to workover and maintenance activities. For FY22, the average daily gross volume...

Given the promoter's intent to increase the stake and loans given to the parent by VEDL, we believe potential corporate actions could be the key drivers of the stock price. Moreover, high leverage and scheduled debt repayments at the parent VRL remain an overhang. Maintain Neutral. High commodity prices boost EBITDA to all-time high 4Q EBITDA rose 17% QoQ (99% YoY) to INR90.4b (est. INR87.6b) and adj. PAT rose 15% QoQ to INR34.9b (est. INR37.4b), led by higher commodity prices. EBITDA (excl. Hindustan Zinc) improved 15% QoQ to INR51.5b....

Vedanta resources limited has come up with an open offer to acquire 651 million shares representing 17.5% of the share capital at an offer price of Rs 235. Earlier in Jan21, the company had offered to buy a 10% stake at an offer price of Rs 160.

Vedanta's earnings remain sensitive to movement in commodity prices. The improvement in major commodity prices over the last couple of quarters augurs well for the company. We value the stock on a SoTP basis and arrive...

Though large exploration projects may not be planned in the near-term, the company is well positioned to fulfill commodities demand through its strong reserve of ores. We reiterate our BUY rating on the stock with a roll forward target price of Rs. 196 based on 4.1x FY23E EV/EBITDA. Revenue helped by recovery in commodity prices For Q3FY21, revenue was up 6.5% YoY to Rs. 22,498cr, primarily due to increase in copper, iron ore and silver sales as compared to Q3FY20. Aluminium revenue witnessed growth of 8.7% YoY to Rs. 7,378cr with LME prices rising 9.4% YoY to USD...

parent by VEDL, we believe the stock price would be driven by corporate actions rather than earnings outlook. Moreover, high leverage and scheduled debt repayments at the parent VRL remain an additional overhang for VEDL. Maintain Neutral. Higher LME leads EBITDA to highest level in last 11 quarters 3QFY21 EBITDA rose 19% QoQ (48% YoY) to INR77.6b (est. INR73.5b), and adj. PAT rose 68% QoQ to INR33.0b (est. INR25.2b), led by a sharp recovery...

On the back of a sequential uptick in non-ferrous metal prices, Vedanta reported a steady Q2FY21 performance. Consolidated topline for Q2FY21 came in at | 21107 crore, up 32% QoQ. Consolidated EBITDA for Q2FY21 came in at | 6531 crore, up 48% YoY, 64% QoQ. Steady EBITDA performance in Q2FY21 on a YoY basis was supported by higher volume at Zinc India business, subdued input commodity prices, lower cost of production at aluminium, steel and zinc business and rupee depreciation, partially offset by lower volume at the oil & gas business. Consolidated...