Emkay reiterates Buy on Vedanta, keeps target price unchanged at Rs 575

Emkay has a buy call on Vedanta with a target price of Rs 575. The current market price of Vedanta is Rs 435.95. The time period given by the analyst is a year when Vedanta Ltd. price can reach the defined target. Vedanta, incorporated in 1965, is a Large Cap company with a market cap of Rs 170688.44 crore, operating in a Diversified sector.

Vedanta's key products/revenue segments include Aluminium, Copper Cathodes, Oils, Iron Ore, Pig iron, Others, Other Operating Revenue, Power, Metallurgical Coke, Export Incentives, Scrap for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 39795 crore, up 2.21% from last quarter Total Income of Rs 38934 crore and up 9.57% from last year same quarter Total Income of Rs 36320.00 crore. The company has reported net profit after tax of Rs 4876 crore in the latest quarter.

The company's top management includes Mr.Anil Agarwal, Mr.Navin Agarwal, Mr.Arun Misra, Ms.Priya Agarwal, Mr.Dindayal Jalan, Mr.Akhilesh Joshi, Ms.Padmini Sekhsaria, Mr.Upendra Kumar Sinha. Company has S R Batliboi & Co. LLP as its auditors. As on 31-12-2024, the company has a total of 391 Crore shares outstanding.


Investment Rationale
Emkay analysts met the management of Hindustan Zinc (HZ), which contributes 40% to Vedanta's EBITDA. The company operates a world-class asset with industry leading margins and return ratios. Hindustan Zinc's focus is to remain a volume-driven company with the target to nearly double capacity to 2mt by 2030. The management is sweating the assets well with a target to optimize volumes/costs to enhance profitability. The brokerage expects the company to rationalize operating cash flows to balance growth capex and dividends. They have reiterated a BUY call on Vedanta and kept the target price unchanged at Rs 575.

Promoter/FII Holdings
Promoters held 56.38 per cent stake in the company as of 31-Dec-2024, while FIIs owned 12.02 per cent, DIIs 15.37 per cent.