Neutral on Vedanta, target price Rs 300: Motilal Oswal

Motilal Oswal has neutral call on Vedanta with a target price of Rs 300. The current market price of Vedanta Ltd. is Rs 279.7.

Vedanta Ltd., incorporated in the year 1965, is a Large Cap company (having a market cap of Rs 107278.30 Crore) operating in Diversified sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 29065.00 Crore, up 23.05 % from last quarter Total Income of Rs 23621.00 Crore and up 42.60 % from last year same quarter Total Income of Rs 20382.00 Crore.

Investment Rationale
Given the promoter’s intent to increase the stake and loans given to the parent by VEDL, the brokerage believes potential corporate actions could be the key drivers of the stock price. At CMP, the stock is trading at 4.8x FY22E EV/EBITDA. It values Vedanta on an SOTP basis to arrive at TP of INR300.


Promoter/FII Holdings
Promoters held 55.1 per cent stake in the company as of March 31, 2021, while FIIs held 16.6 per cent, DIIs 11.6 per cent and public and others 16.7 per cent.


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