Vedanta Shares Soar 4% After Q1 Print, Brokerages See Up To 40% Rally Ahead

Vedanta‘s share price was surging at the bourses on Wednesday after the company’s Q1 results impressed analysts and investors.

What Happened: The company reported a net profit of ₹3,606 crore for the quarter, marking a 36% increase compared to ₹2,640 crore in the same period last year. Revenue from operations for the April-June quarter rose approximately 6% to ₹35,765 crore, up from ₹33,733 crore reported in the corresponding quarter of the previous year.

Brokerage Reactions: Nuvama maintained its “buy” rating for the stock but cut the target price to ₹608 from ₹644. The revised target still indicates an around 47% upside from the stock’s last closing price of ₹413.90. The brokerage said that it retains a positive stance on Vedanta due to several company-specific triggers.

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These include high dividend payouts, cost reduction efforts and anticipated volume growth in aluminium and zinc from FY26. The demerger of businesses, expected to be completed by the end of FY25 with clearance from lenders, is also seen as a value-unlocking move.

Systematix also reiterated its “buy” rating for the stock but revised the target price down to ₹497 from ₹536. The analysts said that the company reported a consolidated EBITDA of ₹9,950 crore, marking a 54.9% increase year on year and a 13.4% rise quarter on quarter, which was 3% above their estimates.

Consolidated revenue for the quarter stood at ₹35,765 crore, reflecting a 6.0% year-on-year growth and a 0.7% quarter-on-quarter increase, aligning with their expectations.

The brokerage also highlighted that Vedanta’s net debt was around ₹61,300 crore, up by ₹5,000 crore from the previous quarter. Despite this increase, the company’s leverage (net debt to EBITDA) remained relatively stable at 1.5x, compared with 1.9x at the end of Q1FY24, the analysts added.

Price Action: Vedanta’s share price was up 4.22% to trade at ₹431.30 shortly after market open on Wednesday.

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