Vedanta share price target: Brokerages raise targets on Vedanta stock post-Q4; should you buy now?

Vedanta share price target: Anil Agarwal-led Vedanta shares rose as much as 5.7 per cent to the day's high of Rs 402.95 on NSE, rising for the third session on Friday, April 26 after the Vedanta stock got big target upgrades from global brokerages following the mining conglomerate's Q4 earnings report. The stocks settled at Rs 397, up by 4.19 per cent on NSE. 

Vedanta Q4 results 

Vedanta posted a 27.21 per cent year-on-year (YoY) fall in its consolidated profit after tax (PAT) at Rs 1,369 crore for the quarter ended March 31, 2024 (Q4 FY24). The numbers missed Zee Business analysts' estimates of Rs 2,036 crore. In the year-ago period, the metal giant had posted a profit of Rs 1,881 crore.

The company's revenue from operations came in at Rs 34,937 crore, down 6.1 per cent YoY. Read more on Vedanta Q4 results 

Management Commentary

Commenting on the quarterly results, Arun Mishra, the executive director of Vedanta, said, "FY 2023–24 has been a remarkable year for Vedanta. We have achieved record production across our key businesses, a testament to our consistent focus on operational excellence. This focus and our commitment to cost leadership ensured strong margins even during a challenging commodity market. We're especially proud of the Lanjigarh refinery expansion to 3.5 MTPA, taking us closer to a fully integrated 3 MTPA aluminium operation. Commencing operations at the new Bicholim mine in Goa marks a significant step in our growth journey." 

Vedanta share price target: Should you buy, sell or hold the stock?

CLSA has maintained a buy call on Vedanta. The brokerage has raised the target to Rs 430 from Rs 390. The brokerage has highlighted the following key points: 

• 4Q EBITDA of Rs 88 billion (+3% QoQ) 6 per cent above estimates
• Largely on better zinc and oil profitability
• Net debt reduction by Rs- 60 billion QoQ a surprise
• To remain elevated a good play on metals upcycle

Citi too, has continued with a buy call on Vedanta. Citi has raised the target by Rs 120 per share on the metal stock to Rs 425 per equity share. On the other hand, JP Morgan has retained a neutral call. The brokerage has raised the target to Rs 375 from Rs 325. 

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