Vedanta Ltd. share price target

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...

VEDL, through its overseas subsidiary CIHL, has advanced an inter-corporate loan of USD956m to its parent Vedanta Resources (VRL) during Apr-Oct'20 (1QFY21 USD307m, 2QFY21 USD200m and Oct'20 USD450m), repayable gradually over the next three years. At the same time, VEDL has passed on <50% of dividend received from subsidiary Hindustan Zinc (HZL). Given lack of clarity on distribution of HZL's dividend and capital allocation concerns, we have raised Holdco discount for HZL to 30% (from 10%). Moreover, high leverage and scheduled debt repayments at parent VRL...

25 June 2020 In a Special Resolution by postal ballot, 93.3% of all shareholders and 84.3% of public shareholders have approved to delist the shares of Vedanta (VEDL). As ensuing steps, VEDL would announce a reverse book building process for shareholders to tender the shares, resulting in the discovery of the final exit offer price. Earlier, on 12 May, the promoter group (led by Vedanta Resources Plc) had shared an Indicative Offer Price (IOP) of INR87.5/share. Price discovery is thus likely to happen at a higher level. We value VEDL at an SOTP-based target price of INR114/sh, built on the expectation of a volume uptick in the Zinc and Oil & Gas businesses as well as 510% higher commodity prices than currently prevailing. Among the public shareholders, 84.3% of votes were in favor of the resolution, against the statutory requirement of 66.

business and lower power sales at TSPL partially offset by higher volume at Aluminium and Iron Ore business, and rupee depreciation. Revenue was lower by 8% sequentially, primarily due to lower commodity prices further impacted by COVID-19, lower volume at Aluminium business and lower power sales at TSPL, past exploration cost recovery at Oil & Gas business in Q3...

Continued volatility in commodity prices were further aggravated by Coronavirus pandemic. Strong Alumina production from Lanjigarh (+18.0% YoY), along with cost efficiencies should be the positive catalyst for upcoming quarters. We reiterate our BUY rating on the stock, with a roll forward target price of Rs. 94 based on 3.9x FY22E EV/EBITDA. Revenue impacted by weakness in metal prices In Q3FY20, revenue dropped 9.9% YoY (-2.8% QoQ) to Rs. 21,126cr, as the LME prices continued to descend. Aluminum revenue declined 10.7% YoY owing to decrease in...

Vedanta Limited is a diversified natural resources company. Our business primarily involves producing oil & gas, zinc - lead - silver, copper, iron ore, aluminum and commercial power. Vedanta Limited is the Indian subsidiary of Vedanta Resources Plc. Governance and Sustainable Development and is at the core of Vedanta's strategy, with a strong focus on health, safety and environment and on enhancing the lives of local communities. The company is conferred with the Confederation of Indian Industry (CII) 'Sustainable Plus Platinum...

The recent pickup in prices of aluminum and zinc along with additional production in the upcoming quarters especially from the ramp-up of Gamsberg should be the key drivers of value. We thereby assign BUY...