Stock To Buy: Vedanta Stock Gains 73.83% YTD; Buy For Highest TP Rs 508: Brokerages Bullish

Billionaire Anil Agarwal's Vedanta Ltd shares gained over 2% on June 14, 2024 as several brokerages firm appear bullish. Current market price of Vedanta share on BSE is Rs 447.10 per share. Vedanta offers a dividend yield of 4.92% and declared 42 dividends since July 23, 2001. In last 1-year, Vedanta declared an equity dividend amounting to Rs 22.00 per share.

Vedanta shares offered attractive returns of 73.83% year-to-date. The company earlier this year on May 16 recommended its first interim dividend of Rs 11/- per equity share on the face value of Re 1/- per equity share for the FY 2024-25 amounting to Rs 4089 crore. More details below:

Analysts Recommend Buy, Hold Call For Vedanta Shares: Hong Kong's brokerage CLSA in its latest report stated there was scope for further re-rating for Vedanta shares amid the company's plan to expand its alumina refinery capacity and slash costs. "Execution of these profitability improvement initiatives will be key to a re-rating," said analysts at CLSA.

Brokerage firm StoxBox recommended buy call for Vedanta shares with target price of Rs 508 per share. The analyst said, "the stock displays a high relative strength compared to the 50 index, with strong buyers' demand and sectorial strength, which is a positive sign. We recommend buying Vedanta for the target of Rs 508 with a protective stop at Rs 421."

Investec recommended hold call as the brokerage firm raises the target price to Rs 473 from Rs 270 per share.

Anand Rathi also appears upbeat on Vedanta stock saying, "Support will be at Rs 438 and resistance at Rs 452 A decisive close above the Rs 452 level may trigger a further upside to 470 . The expected trading range will be between Rs 435 and Rs 485 for a month."

Vedanta Ltd Recommends Dividend: As per the BSE filing of the company dated May 16, 2024, "First Interim Dividend of Rs 11/- per equity share on face value of Re 1/- per equity share for the Financial Year 2024-25 amounting to Rs 4,089 Crores." The company fixed May 25, 2024 as the record date for dividend.

Vedanta's Recent Fundraise: As per exchange filing dated May 16, 2024, "Subject to the approval of the shareholders of the Company and subject to such regulatory/statutory approvals as may be required, raising of funds, inter alia, by issue of equity shares and/or any financial instrument(s) and/or security convertible into equity shares, combination of such securities by way of one or more public and/or private offering(s) and/or further public offering and/or qualified institutions placement(s) and/or preferential allotment(s) and/or rights offering or american depository receipts / global depository receipts and/or foreign currency convertible bonds or any combination thereof or any other method under applicable laws, for an aggregate consideration of up to Rs 8,500 Crores."

Vedanta Q4: It announced a 27% decline in Q4 profit ended March 31, 2024 on rising finance expenses and sluggish metals prices like zinc, copper, and aluminium. Vedanta's net profit fell to Rs 1369 crore for Q4 ended March 31, 2024 as against Rs 1881 crore net profit declared in the corresponding quarter of last year. Vedanta declared a dip of 6% in its revenue from operations to Rs 34,937 crore for March quarter and remained slightly changed, sequentially.

Vedanta Limited Share Performance: The 52-week high price of Vedanta Limited share on BSE is Rs 506.85 apiece (as on 22/05/2024) and 52-week low price is Rs 207.85 per share (as on 28/09/2023). Vedanta shares slipped 2.90% in last 1-week, gained 76% in last 6-months, zoomed 59% in last 1-year, and offered return of 163% in last 5-years.

Disclaimer: The stock has been picked from the brokerage report of CLSA, StoxBox, Anand Rathi, and Investec. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.