Buy Vedanta, target Rs 150: CLSA
Growth was largely driven by rising aluminium, power and iron ore volumes, and falling aluminium costs. Prices of key commodities are stabilising and that should support margins
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| Updated: CLSA upgraded Vedanta to buy from sell and has also upgraded its 12-month target price to Rs 150 from Rs 70 earlier. After weak FY16, the global brokerage firm expects the company to deliver strong earnings growth over FY17-19.
Growth was largely driven by rising aluminium, power and iron ore volumes, and falling aluminium costs. Prices of key commodities are stabilising and that should support margins.
The capex will remain low while rising OCF will drive strong FCF and deleveraging. CLSA forecast strong 18 per cent and 45 per cent EBITDA and EPS CAGR over FY16-19.
Growth was largely driven by rising aluminium, power and iron ore volumes, and falling aluminium costs. Prices of key commodities are stabilising and that should support margins.
The capex will remain low while rising OCF will drive strong FCF and deleveraging. CLSA forecast strong 18 per cent and 45 per cent EBITDA and EPS CAGR over FY16-19.
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