Buy Vedanta, target price Rs 375: Equity99

Equity99 has buy call on Vedanta with a target price of Rs 375. The current market price of Vedanta is Rs 277.5. Equity99 recommended to keep stop loss at Rs 250.

Vedanta, incorporated in the year 1965, is a Large Cap company (having a market cap of Rs 103078.13 Crore) operating in Diversified sector.

Vedanta key Products/Revenue Segments include Aluminium, Copper Cathodes, Oils, Pig iron, Iron Ore, Others, Power, Other Operating Revenue, Metallurgical Coke, Export Incentives, Scrap for the year ending 31-Mar-2023.


Financials
For the quarter ended 30-06-2023, the company has reported a Consolidated Total Income of Rs 34279.00 Crore, down -11.27 % from last quarter Total Income of Rs 38635.00 Crore and down -12.90 % from last year same quarter Total Income of Rs 39355.00 Crore. Company has reported net profit after tax of Rs 3308.00 Crore in latest quarter.

The company’s top management includes Mr.Anil Agarwal, Mr.Navin Agarwal, Mr.Sunil Duggal, Ms.Priya Agarwal, Mr.Upendra Kumar Sinha, Mr.Akhilesh Joshi, Mr.Dindayal Jalan, Ms.Padmini Somani. Company has S R Batliboi & Co. LLP as its auditors. As on 30-06-2023, the company has a total of 372 Crore shares outstanding.

Investment Rationale
Company has reported sales growth of 20% CAGR over last 3 years. Company has ROCE of 23.8% and ROE of 20.4%. The stock trades at a P/E of 9.8 times against industry P/E of 11.6x.

Promoter/FII Holdings
Promoters held 68.11 per cent stake in the company as of 30-Jun-2023, while FIIs owned 7.48 per cent, DIIs 9.98 per cent.