Ritika
Anil Agarwal’s Vedanta Limited has been in the news for the past few days due to a deal. There were reports that Vedanta and Taiwanese electronics company Foxconn would jointly do semiconductor business in Gujarat. However, now Vedanta has stated that its holding company Volcan Investments Limited will look after the proposed business of manufacturing semiconductors in Gujarat.
Following this clarification from Vedanta, the company’s stock fell up to 9 per cent. However, brokerage and research firm Edelweiss says that this stock will grow rapidly in the coming times. Along with this, the rating of Buy has been given. This means that investors are advised to buy the stock.
What the brokerage has to say: According to Edelweiss, the stock price can go up to ₹355. As of now, the stock price is at Rs 290.60. From this perspective, there can be a profit of up to Rs 65 per share. At the same time, Vedanta’s stock has registered a fall of Rs 23.50 or 7.48% as compared to a day earlier. The market capital of the company is 1 lakh 8 thousand crores.
According to the brokerage, Vedanta’s EBITDA is bullish despite low commodity prices, which is its biggest strength. Apart from this, Vedanta is also in a strong position with respect to dividend etc.
Edelweiss analysts called on Sunil Duggal, CEO, to learn about the company’s strategic initiatives, efforts and growth prospects. During the interaction, Duggal informed that all the divisions of Vedanta are on the verge of growth and this will also increase the EBITDA in the next few years.
