Buy Vedanta, target price Rs 374: Geojit

Geojit has buy call on Vedanta Ltd. with a target price of Rs 374. The current market price of Vedanta Ltd. is Rs 321.1.
Time period given by analyst is one year when Vedanta Ltd. price can reach defined target.

Vedanta Ltd., incorporated in the year 1965, is a Large Cap company (having a market cap of Rs 118783.02 Crore) operating in Diversified sector.


Vedanta Ltd. key Products/Revenue Segments include Aluminium, Copper, Iron Ore, Oil & Gas, Power, Export Incentives, Other Operating Revenue, Scrap for the year ending 31-Mar-2021.


Financials
For the quarter ended 30-09-2021, the company has reported a Consolidated Total Income of Rs 31074.00 Crore, up 6.60 % from last quarter Total Income of Rs 29151.00 Crore and up 42.91 % from last year same quarter Total Income of Rs 21744.00 Crore. Company has reported net profit after tax of Rs 5812.00 Crore in latest quarter.

Investment Rationale
The company posted the highest-ever quarterly revenue and EBITDA in Q2FY22 due to a spike in demand, increase in production activities, and recovery in prices. The long-term outlook remains positive as the company is focusing on ramping up production across all the business verticals. It is also well positioned to benefit from the favorable regulatory environment and gain operational efficiencies through the adoption of digitalization and technology. It reiterates BUY rating on the stock with a revised target price of Rs. 374 based on 4.5x FY23E EV/EBITDA.

Promoter/FII Holdings
Promoters held 65.18 per cent stake in the company as of 30-Sep-2021, while FIIs owned 16.57 per cent, DIIs 4.04 per cent.