Vedanta shares rally 5.5% after Q4 results. Should you buy, sell or hold?

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Here’s what brokerages say on the stock:

Motilal Oswal

VEDL performance in 4QFY24 came largely as anticipated across segments. Extending the maturity of bonds at HoldCo. by three years offers the company adequate liquidity comfort in the near term. The Capex plans are progressing well which would lead to further cost savings. Backed by this, the brokerage firm has marginally increased its target price for Vedanta at Rs 360, while maintaining a ‘neutral’ rating.

Nuvama

Nuvama believes VEDL is best placed to ride rising commodity prices. Rising commodity prices not only improve cash flows, but open up the potential of increasing the valuation multiple too as debt overhang shall subside significantly. All in all, they increased the average aluminum/zinc/silver price to USD2,600/2,900/30 (earlier USD2,400/2,600/25) for both FY25 and FY26.

The domestic brokerage firm has a ‘buy’ rating for Vedanta with a target price of Rs 542.

CLSA

Among global brokerages, CLSA has raised its target price on Vedanta to Rs 430 saying that it is a good play on the metals upcycle and that the deleveraging plans may mean high dividends.

CITI Group

Citi Group also remains positive about VEDL and has also advised to raise the target from Rs 305 to Rs 425. Recently the company was also in news when the company had announced a demerger in September last year. It intends to form six companies, each of which will house its different businesses - aluminum, power, oil and gas, base metals and steel. Ajay Goel, group CFO, reiterated that the demerger is on track to be concluded by the end of the calendar year.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)