Vedanta surges as CLSA upgrades stock

NEW DELHI: Shares of Vedanta ended higher by 3.27 per cent on Friday after brokerage firm CLSA upgraded it to a buy.

“We upgrade Vedanta from sell to buy and raise target price to Rs 150 from Rs 70,” CLSA said.

CLSA sees prices of key commodities stabilising, with zinc prices on improving trend.

“After weak FY16, expect co to deliver strong earnings growth over FY17-19. Growth driven by rising aluminium, power & iron ore volumes, falling aluminium costs,” it added.

Reacting to the report, the scrip gained 2.61 per cent to hit a high of Rs 115.95 on the BSE. The stock has gained 25 per cent in the year so far.

CLSA projects Vedanta's Ebitda growth at 18 per cent and EPS growth at 45 per cent over FY16-19.