Vedanta shares rally 7% after CLSA upgrades stock citing commodity upcycle

The brokerage said that Vedanta is well placed to benefit from the commodity upcycle given its diversified exposure. Additionally, the 's efforts to raise capacity and profitability across segments through its ongoing also augurs well.

The stock is performing at its 52 week-high, in line with the metals index which is also trading at an all time high at the levels of Rs. 750.

Vedanta recently commenced its mining operations at Bicholim mineral block in Goa that came to a halt in March 2018. In other news, the firm also announced a 4% increase in the aluminum production capacity to 5,98,000 tonne in the fourth quarter of FY24.

The company’s refined zinc production business, iron ore business, pig iron production, FACOR business and Ferro chrome production business showed an improvement in their operational efficiency/capacity.

Recently, asset managers like BlackRock, Abu Dhabi Investment Authority, and mutual funds like ICICI mutual fund and Nippon India mutual fund had also increased their holdings in Vedanta.

The company has given 35.27% returns in the last 3 months and 33.85% returns in the last 1 year on the upside.

In the meantime, other metal stocks jumped 11% on Tuesday, with , Vedanta and (SAIL) leading the pack, amid triggers like strong Q4 updates and improving manufacturing outlook in the world's two largest economies – China and USA.

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