Vedanta in trade today after reporting a steep fall of 45% year-on-year lost as much as 4% in intra-day trade today to record the day's low of Rs. 163.30 on the BSE. Consolidated revenue stood at Rs 23,468 crore for the March quarter, as compared with Rs 27,630 crore in the same period of 2018-19, Vedanta said in a regulatory filing.
Soon after, CLSA also cut the target price of the stock to Rs. 135 per share The brokerage retained its 'sell' rating as concerns over related party transaction to remain an overhang.
"Vedanta's EBITDA, which fell 22% YoY (up 9% QoQ) was 6% ahead of estimates. However, the 14-34 percent year-to-date rally in zinc and oil prices is benefiting Vedanta as these form 80 percent of its EBITDA. On the flip side, the slow volume ramp-up in zinc and oil, as well as increased costs in Hindustan Zinc, are concerns. Notwithstanding the above, we believe that concerns of related party transactions and the future use of cash will overshadow Vedanta's earnings outlook. "
The stock was last trading at Rs. 156.90, down Rs. 6.5 or 3.98% on the BSE.