Vedanta Shares Slip Nearly 5% In Today's Session, Down About 9% From Monthly Highs

Share prices of Vedanta Limited (VEDL) today on January 23rd, 2024, are tumbling since the beginning of the live session trading around Rs. 253/-, a fall of almost 4.5% since the previous closing. Vedanta share prices on Friday were posting sluggish movements, following the overall trend of the past weeks. After a consistent rise noted in share prices of VEDL since October's first week, the per-share value rose from the Rs. 210/- range to above Rs. 275/- this month, a hike of almost 30% in the past four months alone. Nonetheless, the selling spree began ten days ago and remains 8.66% below the previous resistance levels.

The previous calendar year for Vedanta posted sluggish movements throughout the year, which were trading at Rs. 329.15/- a piece in January 2023 and have consistently tumbled to give the lowest point at Rs. 208.5/- by the end of September last year. This year so far, the company shares of Vedanta began at Rs. 257.15, which surged for the first two weeks, climbing to a high of Rs. 274.6/-, and pull-backed to first-week levels currently. VEDL shares have yet posted a 52-week high of Rs. 338.25/- in January 2023 and a 52-week low of Rs. 208/- in September 2023. Vedanta has reported a consolidated net profit of Rs. 14,500 crores. Compared with its competitors, Hindustan Copper posted a net profit of Rs. 295 crores, while Hindustan Zinc reported 10,500 cores, and Gravita India notified Rs. 204 crores as net profit for FY2023.

India Ratings and Research on January 22nd revised its ratings on long-term debt instruments of VEDL to 'IND A+' from 'IND AA-' and for short-term debentures, the ratings are now updated to 'Rating Watch with Developing Implications' from 'Ratings Watch with Negative Implications'. However, as per recent news reports, Vedanta Resources extended the maturity of their three-dollar bonds in a deal with its creditors. The bondholders approved the bonds maturing in 2023-24 amounting to $ 3.2 billion, out of which $ 779 million is settled, and the balance would be repaid in the next four years in cash and new bonds. The S&P Global Ratings have downgraded the Indian mining giant with an 'SD' (Selective Default) rating this past week. The company bonds that were not issued for extension hold the same ratings, which might support the stock price movement of Vedanta ahead.

The subsidiary company of VEDL, Hindustan Zinc is seeking approval from the Ministry of Mining for establishing two distinct business entities within zinc, lead, and silver verticals. Another subsidiary company, Bharat Aluminium Company (Balco) purchased Finnish Glazing Business Riikku Group for 15 million Euros as of January 22nd. Nicomet Industries Limited, a firm acquired by VEDL in 2021 is among the key players in the Global High-Purity Cobalt Sulfate Market. The increased demand for EV batteries and plating indicates a strong hike in global demand. However, due to the recent blockade in the Vedanta ESL Steel plant in Bokaro, one of the largest pig iron manufacturers has incurred a loss of Rs. 100 crores as production fell by 70% in recent months. The company has announced an earnings conference call scheduled for Thursday, January 25th, 2024 for the third quarter of 2023.