1:6 Split Soon: Metal Stock Vedanta In Focus Next Week After Big Acquisition Announcement; BUY/HOLD

Metal giant and highest dividend yield large-cap stock, Vedanta will be in focus next week after its big acquisition announcement. This comes ahead of its demerger in the ratio of 1:6. This means that Vedanta is set to split into 6 businesses. The near-term outlook of Vedanta is favourable with its deleveraging of Vedanta Resources, demerger, and capacity expansion strategies, brokerage recommends buying or holding this stock.

Vedanta is the top performing metal stock of 2024 in the sector. YTD, Vedanta stock gained by over 59%, better than the Nifty Metal index surged by 12.2% so far in 2024.

On NSE, Vedanta's share price stood at Rs 410 apiece, up by 3.9% on May 10, with a market cap of Rs 1,52,405.46 crore. Earlier this month, Vedanta touched a new 52-week high of Rs 420 apiece.

The target price in Vedanta is from Rs 421 to Rs 438 since the stock is already highly valued.

Next week, Vedanta will be in focus after it announced that its board approved the acquisition of an additional stake of 46.57% in AvanStrate Inc. ("ASI") (an indirect subsidiary of the Company with 51.63% holding) from HOYA
Corporation, Japan ("HOYA") through Cairn India Holdings Limited ("CIHL"), a wholly-owned subsidiary of the Company.

Vedanta Big Announcement:

As per the regulatory filing, the acquisition of AvanStrate aligns with the Company's vision of pivoting towards technology and diversifying into hi-tech manufacturing, while expanding its presence in high-growth markets. Leveraging its expertise and resources, AvanStrate aims to strengthen Vedanta's capabilities to support the burgeoning hi-tech electronics manufacturing industry in India and capitalize on the growing demand for electronic devices in India and globally.