Buy Vedanta, target Rs 425: Edelweiss Financial Services

Edelweiss Financial Services has a buy call on Vedanta with a target price of Rs 425.

The current market price of Vedanta is Rs 289.35.

Time period given by the brokerage is year when Vedanta price can reach defined target.


"Vedanta’s (VEDL) Q4FY18 operating performance indicates that the company (and Hindustan Zinc) is likely to meet our Q4FY18 and FY18 EBITDA estimates. Key highlights: i) Key divisions zinc-India, oil & gas and aluminium met upper-end of guidance and slightly exceeded our estimates; ii) international zinc & copper expansions on track; iii) impairment of Goa iron ore assets (Rs 21-24bn) and review of reversal of past period impairment charge in oil & gas division pegged at Rs 159bn as on March 31, 2017. Going by the progress in expansion projects, we believe VEDL stands to gain from operating leverage in FY19. Maintain ‘BUY’ with TP of Rs 425," Edelweiss Financial Services said in a report.