Vedanta shares have risen 77% in the last two months. The stock has increased 16% after Q4 earnings were disclosed on April 25 of this year. The metal and mining stock, which closed at Rs 251.85 on March 13, closed at Rs 433.15 on the BSE the previous session. The stock closed around its 52-week high of Rs 438.5, hit on May 14. The stock hit a 52-week low of Rs 207.85 on September 28, 2023.
Vedanta's stock ended the previous session 4.64% higher at Rs 433.15 on the BSE. The firm's market capitalization stood at Rs 1.61 lakh crore. The stock rallied after the mining company said that it would hold a board meeting on May 16 to discuss various fundraising techniques, including the issuing of equity shares or other convertible securities. The meeting will also discuss the prospect of declaring a maiden interim dividend in fiscal year 2024-25.
On Wednesday, the stock reached a new 52-week high of Rs 445. 50. On the BSE, 2.43 lakh shares of the firm changed hands, resulting in a turnover of Rs 10.66 crore. Vedanta's shares have a one-year beta of 0.8, showing modest volatility throughout the period.
In terms of technicals, Vedanta's relative strength index (RSI) is 72.7, indicating that the stock is overbought. Vedanta shares are trading higher above the 10 day, 20 day, 30 day, 50 day, 100 day, 150 day, and 200 day moving averages. Nuvama increased its target price to Rs 542 from Rs 394 following Q4 earnings. The firm maintained its 'Buy' rating on the stock.
"We are raising Vedanta's FY25/26 Ebitda estimates by 18%/23% to reflect stronger commodity prices and a lower CoP in aluminium. We believe that the company's debt peaked in FY24. The aforementioned upward earnings revision raises the target price to Rs 542 (previously Rs 394); reaffirm 'BUY'," Nuvama said.
According to Abhijeet from Tips2trades, the Vedanta stock price is positive but overbought on the daily charts, with the next resistance level at Rs 469. Investors should continue to book gains, as a daily close below Rs 415 could lead to a slide to Rs 371 in the near term.
Centrum Broking has a price target of Rs 438 on Vedanta shares, which it met in the previous session.
"We retain our FY25/FY26 DPS estimate of Rs45/share (12% dividend yield), since VEDL plans to lower the parent company's leverage, Vedanta Resources (VRL). Our stock target price has been raised to Rs438 (previously Rs273), based on FY26E SoTP. At CMP, we estimate a 15% upside and have revised our rating to BUY (previously ADD)," Centrum stated.
Vedanta Ltd is a subsidiary of Vedanta Resources Ltd, with operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, aluminum, and electricity in India, South Africa, and Namibia.
