Vedanta Ltd shares are trading at a 52-week high. On April 3, 2024, the firm run by Anil Agarwal set a 52-week high of Rs 308. However, Vedanta stock is trading 38% lower than its record high of Rs 495. In terms of returns, the stock sank 25% in two years and increased 8% in one year. In five years, the stock has risen by 64%.
The large-cap stock is trading above the 10 day, 20 day, 30 day, 50 day, 100 day, 150 day, and 200 day moving averages, indicating that it is in the positive zone.
On Tuesday, Vedanta shares closed at Rs 301.15, up 4.80%. Vedanta's stock has increased by 11.54% over the last month. In the current session, the stock increased 2.32% to an intraday high of Rs 308 on the BSE. The firm's market capitalization increased to Rs 1.13 lakh crore. Vedanta's shares have a one-year beta of 0.8, showing relatively low volatility throughout the time.
In terms of technicals, Vedanta's relative strength index (RSI) is 69.1, indicating that the stock is not oversold or overbought.
Nuvama, a brokerage, is optimistic on the company and has set a target price of Rs 394. It has lowered its original aim of Rs. 371.
"Management has guided for USD in debt reduction at Vedanta Resources by FY27, with no additional debt at Vedanta Ltd." The monetisation of steel and iron ore assets by Q1FY25E (estimated at $2 billion) will serve as the first stage. Furthermore, we anticipate a DPS of Rs 40 each in FY25E and FY26E. Reiterate 'BUY' with a target price of Rs 394 (formerly Rs 371)," Nuvama stated.
Another firm, Phillip Capital, is optimistic on Vedanta
“Vedanta Ltd has very ambitious plans in terms of capacity expansion and seems like trying to adopt the GE way (Jack Welch) that they want to be a top player in every business they enter. However, it has disappointed us several times w.r.t. to meeting its expansion deadline and thus we are not very keen on looking into FY28 or FY30 targets as of now. Backward integration into coal and Bauxite/alumina, higher ferrous sales and ramp-up of Gamsberg (Zinc International) look achievable to a large extent which is expected to drive the performance in the medium term. Demerger to unlock value and provide stake sale flexibility to the company. With medium-term financial risk diluted meaningfully, we continue to hold our positive stance on the company and reiterate our BUY rating on the stock with a SOPT target price of Rs 350,” said Phillip Capital.
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.
