Vedanta Ltd. share price target

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...

Finance cost for Q2 September 2019 was at Rs 1,340 crore, lower by 9% y-o-y, primarily due to reduction in gross borrowings, while on a sequential basis the finance cost remained flat. Exceptional item primarily is a charge of Rs 504 crore, relating to impairment at Avanstrate Inc, partially offset by accrual of interest against pending claims at TSPL based on Supreme Court order giving a net charge of Rs 422 crore. Section 115BAA of the Income-tax Act, 1961 has been introduced by the Taxation Laws...

Vedanta Limited is a natural resource company engaged in the business of manufacturing copper and copper products, and aluminum and aluminum products. The Company has iron ore mining operations in the States of Goa and Karnataka. Its copper business consists of custom smelting. Its power business consists of 2,400 megawatt thermal coal...

Vedantas (VEDL) EBITDA of INR44b (-15% QoQ) was below our estimate of INR47.2b (6% miss) due to higher cost of production (CoP) in the aluminum business and lower margins in the steel business. However, business reported a loss of INR1.1b at the EBITDA level (v/s profit of INR1.8b in 1Q) due to lower LME and higher CoP (up USD88 QoQ led by higher power cost due to lower linkage coal availability). EBITDA increased 62% QoQ to INR2.1b, led by lower CoP and higher sales, partly offset by lower realizations. had reported an EBITDA of ~INR21b. For 1HFY20, EBITDA/PBT was down 15%/36% YoY at INR96/INR36b. We cut our FY20/21 EBITDA estimate by 10/9% on the back of higher costs for the aluminum business. While the company expects its aluminum CoP to reduce through higher captive bauxite and coal linkages, coal availability issues may impact costs over the near term. Aluminum reported CoP was higher due to higher power cost.

During the quarter, blended cost of production (CoP) of the aluminium segment fell QoQ from US$1810/tonne in Q4FY19 to US$1764/tonne in Q1FY20. Despite the fall in CoP, on the back of the muted trend in aluminium prices, the blended EBITDA/tonne of the aluminium business declined from US$131/tonne in Q4FY19 to US$64/tonne in Q1FY20. Currently, LME aluminium prices are hovering at ~US$1777/tonne (Q1FY20 average...

EBITDA for Q4 FY2019 was at Rs 6,330 crore, 6% higher q-o-q, primarily due to improved cost of production at Aluminium, higher sales at Iron Ore Karnataka, ESL and Zinc International, partially offset by lower commodity prices, rupee appreciation, lower volumes at Zinc India...

Declining aluminum prices likely to impact future performance For Q4FY19, the aluminium segment's blended cost of production (CoP) declined by US$249/tonne QoQ, from US$2025/tonne in Q3FY19 to US$1776/tonne in Q4FY19. The decline in aluminium CoP was primarily driven by reduction in power costs as availability of linkage and e-auction coal improved. During the quarter, the company was also able to secure ~72% of its coal requirement through the linkage and captive blocks, which aided reduction in cost of production. However, recent trend of reduction in...

7 May 2019 Lower cost of production (CoP) in aluminum and zinc international was the key driver of its growth and better-than-estimated performance. Other led by a mark-to-market gain on the structured investment in Anglo Reported aluminum CoP was down USD249/t QoQ to USD1,776/t due to lower alumina and coal cost. Reported EBITDA/t increased by USD74 QoQ to USD131. Zinc-int CoP was down USD269/t QoQ to USD2,540/t owing to higher volumes (+42% QoQ). Iron ore EBITDA doubled QoQ to INR2.4b, led by higher volumes in Karnataka. Electrosteels EBITDA increased 35% QoQ to INR3.4b, driven by a 35% QoQ increase in sales volume. EBITDA/t was flat QoQ at INR8,597/t. VEDL has paid ~USD270m for the structured investment in Anglo-America PLC in a related-party transaction with its holding company. The total investment is ~USD500m; the balance has to be paid in the next 4-5 quarters. It has recognized a mark-to-market gain of ~USD150m on the investment.