The share price of Vedanta Limited saw a big jump on stock exchanges today. It surged over 6.48% with an intraday high of Rs 214.25 per piece on BSE Sensex. However, at around 0942 hours, the company was trading at Rs 208.70 per piece up by Rs 7.50 or 3.73%. Previous day close was Rs 201.20 per piece.

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The reason behind the hike in the share price is that Vedanta has received NGT nod to reopen Sterlite copper plant in Tuticorin.

As per Sterilte Copper CEO P Ramnath after the NGT order, the company will approach the Tamil Nadu government based on this order next week and request for a consent to operate. 

Further, it will also ask them for access to the plant because the order also mentions the district collector should give access to the plant.

Ramnath also said that their aim is to make the plant operational as soon as possible in PTI report.

Abhishek Poddar, Tarun Lakhotia and Prayatn Mahajan, analysts at Kotak Institutional equities stated  Vedanta's Copper smelter is a favourable order from National Green Tribunal which allows Vedanta to restart Tuticorin copper smelter. They also says that there are possibilities that TNPCB may appeal in the Supreme Court against the order. 

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The trio added that "We await the outcome of the Supreme Court’s order and thereafter timelines of restart before incorporating earnings from the copper smelter in our estimates. If Vedanta’s copper smelter restarts in early FY2020E, our consolidated EBITDA estimate can increase by 5% and earnings by 8% . Our EPS can increase to Rs35.8, Rs37.8 for FY2020E, FY2021E from Rs33.1, Rs34.4 in such a case."

Thereby these analysts recommend to buy Vedanta shares with fair value of Rs330/share based on March 2020E financials. 

According to Kotak below mentioned are positive factors  of Vedanta:

1. Strong volume growth pipeline in zinc and oil & gas operations over FY2020-21E 

2. Improving outlook of global aluminium markets led by a persistent deficit in World ex-China markets. We highlight that the fall in alumina prices over the past 2-3 months will aid Vedanta’s earnings starting 4QFY19.

Today the Indian market opened on a blockbuster note. Currently, the benchmark Sensex is trading at Rs 36,171.42, up by 208.49 points or 0.58%; whereas Nifty 50 was trading at 10,851.70, up by 46.25 points or 0.43% at around 1003 hours.