Vedanta Ltd. share price target

ICICI Securities Ltd | Retail Equity Research For Q2FY17, Vedanta reported a healthy set of numbers. The topline came in line with our estimates while the EBITDA and PAT came in higher than our estimates. The better-than-expected performance was driven by the robust performance from Zinc India and oil & gas segments. Gross consolidated revenues for the quarter came in at | 16777.7 crore. After adjusting for excise, consolidated net operating revenues came in at | 15859.6 crore (down 4.2% YoY, up...

Key takeaways  from CEO track; introducing merged entity estimates : Hosted Mr Tom Albanese, CEO of Vedanta (VEDL) at our 12 AGIC in Mumbai. Cairn India’s (CAIR) minority shareholders have approved the merger, recently. In this note, we introduce VEDL’s estimates on merged entity basis along with the highlights of Mr Albanese’s presentation.

VEDL’s diversified portfolio of natural resources is witnessing multiple tailwinds, which will drive earnings.They expect attributable EBITDA to grow at a CAGR of 22% over FY16-18 to INR183b.The target price is reduced by INR10 to INR160/share based on FY18E SOTP. And are optimistic about the business, but current stock price has 2% downside. Maintain Neutral.

Turnaround slower than expected; working capital up Strong stock performance leaves little upside; downgrade to Neutral Vedanta's (VEDL) 1QFY17 EBITDA of INR34.4b (-1% QoQ/-24% YoY) was below our estimate of INR39.9b. Cost of production of aluminum was temporarily higher than expected, though volumes are ramping up as expected. Iron ore volumes were up 14% QoQ, yet fell short of expectations. EBITDA (ex- HZ and CAIR) declined 9% QoQ (but grew 18% YoY) to INR15.1b, below our estimate of INR19.4b....

Vedanta reported a mixed set of Q1FY17 numbers wherein the topline came in lower than our estimate while the ensuing PAT came in higher than our estimate. The topline for the quarter came in at | 14437.1 crore (down 15.1% YoY, 9.7% QoQ, lower than our estimate of | 17079.5 crore). Revenues came in below our estimate...

Key highlights: Buoyant pricing environment supported the profitability of most of the segmentsledbyZincduringthequarter.However,certainoperatingdisruptions(Power, Copper&Aluminium;)marginallydentedtheprofitabilityforthequarter.Companyremains positiveonzincpricesandwillbenefitbythesame.Themanagementfocustowardsasset sweating&costreductiontoimprovetheprofitabilityoverthecomingquarters.Improved..;.

Vedanta has announced the revised terms of the merger of Cairn India with itself. As per the new offer, minority shareholders of Cairn India will be issued Vedanta shares in the ratio 1:1 (remains same) along with four redeemable preference share of FV | 10/share with a coupon of 7.5% and tenure of 18 months from issuance (sweetened from one redeemable preference share earlier).The management of Vedanta expects the deal to go through by Q1CY17. If the deal goes through it would result in a diversified portfolio for Cairn's minority shareholders and would result in a better balance sheet. This could effectively reduce the cost of capital of the combined entity. The merger is dependent on various approvals, including shareholders approval of Vedanta and Cairn India whose meetings are scheduled on September 8, 2016 and September 12, 2016, respectively. In both shareholder meetings, majority of the minority approval would be required for the potential deal to go through. ICICI Securities Limited have arrived at a target price of | 165. They have maintained HOLD recommendation on the stock.

Trendlyne has 11 reports on Vedanta updated in the last year from 3 brokers with an average target of Rs 173.7. Brokers have a rating for Vedanta with 1 price downgrade,1 upgrade,6 price upgrades in past 6 months and 3 price downgrades in past 1 Year.

Vedanta has proposed a revised and final offer for the longimpeding merger of its subsidiary Cairn India with itself. It has sweetened its initial offer with three additional preferencesharesofRs10facevalue,whichmaybringinCairnIndia'sminorityshareholders tothedealandallayfearsoftheirdisapproval.Themergerwillultimatelyhelpimprovethe...

Attractive revised merger terms improve deal likelihood Vedanta sweetens Cairn merger deal by INR30/share Vedanta Limited's (VEDL) board today (22nd July, 2016) approved revised and final terms for the Vedanta-Cairn India merger deal. VEDL is now offering three additional preference shares (face value of INR10 each) with coupon of 7.5% and tenure of 18 months to minority shareholders of Cairn India. Thus, the revised deal includes: (a) One equity share of Vedanta Limited for every share of Cairn India, (b) Four redeemable preference shares of INR10 each with coupon of 7.5%...

9 Betterthanexpected operating profits from copper, iron ore, and power segments morethanoffsetlowerprofitsfromzincleadingtoa6%operatingprofit+vesurprise. 9 AdjustingforimpairmentchargeofRs123.1bn,consolidatednetprofitwasRs10.4bn...

ICICI Securities Ltd | Retail Equity Research Vedanta's Q4FY16 operational numbers broadly came in line with our estimates. However, the company reported a loss at the PAT level...