Vedanta shares to get $54 million FII boost in MSCI reshuffle after 83% rally in 6 months
Vedanta's Q4 net profit down by over 27% YoY in March quarter. Investor sentiment remains positive with target prices raised. Chairman Anil Agarwal plans $20 billion investments in technology, electronics, and glass sectors in four years to diversify business activities.
Shares of metals and mining major will get a $54 million boost from passive tracking as the global on Wednesday announced to increase the given to the Anil Agarwal-led company.that the rebalancing of the Global Standard Index from May 31 will lead to an inflow of about $54 million as may end up buying around 10.4 million shares of the company.
Besides, has also increased weightage in , , Zomato, Polycab, Samvardhana Motherson, YES Bank and Suzlon Energy.
In the meantime, rose nearly 4% to a fresh record high of Rs 448.95 on BSE. In the last 6 months, the stock has rallied around 83%.
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veteran is betting on Vedanta as being one of the cheapest commodity stocks which could even double investors’ money. “And if you have a vision of doubling your money in the next one year, I think it will be Vedanta once the six companies demerge. You will have to take in light that, yes, there is a debt element which has always been a sore spot, but you cannot expand the way has over the years till you do not have some debt on the books,” Bashin of IIFL Securities said.
In the March quarter, Vedanta reported a net profit of Rs 1,369 crore, down by over 27% year-on-year (YoY) compared to Rs 1,881 crore reported in the year-ago period, while the consolidated revenue from operations was also down by 6% YoY at Rs 34,937 crore.
Despite the decline in Q4 profit and revenue, investors remain bullish on Vedanta shares. Various brokerages like Nuvama, CLSA and Citi Group had recently increased their target price for the stock going up to Rs 542.
Vedanta Chairman has announced plans to invest $20 billion across sectors in four years focusing on technology, electronics, and glass businesses apart from the existing business activities.
Source: Stocks-Markets-Economic Times
