Shares of Vedanta will be in focus during the trading session on Tuesday on the back of three reasons including that its board of the mining major shall be meeting later today to consider fundraising through issuance of non-convertible debentures (NCDs). The company was informed about the board meeting through an exchange filing the previous week.
"We would like to inform you that the company proposes to hold a meeting of its duly constituted Committee of Directors on Tuesday, February 11, 2025 to consider the proposal for issuance of non-convertible debentures on a private placement basis as part of its routine financing / refinancing that is undertaken in ordinary course of business," said the filing.
Beside the board meeting, the stock will also be in focus, along with the entire metal pack as the new US President Donald Trump lifted tariffs on steel and aluminium imports to 25 per cent 'without exceptions or exemptions' to aid the struggling industries on Monday. Vedanta is a leading aluminium and iron ore miner in India.
Shares of Vedanta settled at Rs 435.90 on Tuesday, falling more than 4.3 per cent for the day. The total market capitalization of the company stood at Rs 1.70 lakh crore. The stock has dropped more than 17 per cent from its 52-week high at Rs 527, hit in December 2024.
Vedanta shall be holding a meeting with shareholders and creditors for the purpose of demerger on February 18, 2025 as mandated by NCLT. The multibillion conglomerate led by Anil Agarwal is looking to demerge its listed entity into five sector-focused entities - Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power and Vedanta Iron & Steel, and Vedanta Ltd.
To recall, Vedanta reported 76 per cent rise in its consolidated net profit on a year-on-year (YoY) basis to Rs 3547 crore for the quarter ended December 31, 2024. The metal miner's revenue from operations increased 10 per cent YoY to Rs 38,526 crore for the quarter.
Vedanta's consolidated Ebitda during the third quarter of financial year 2024-25 rose 30 per cent YoY to Rs 11,284 crore with margins improving 517 basis points YoY to 34 per cent. The company reported its highest ever aluminum production of 613 kt in Q3FY25, up 2 per cent YoY.
Higher aluminium prices offset the greater alumina cost and higher zinc, iron ore and oil business further bolstered aluminium profits, said Nuvama Institutional Equities. "We expect a 10 per cent QoQ jump in Q4 Ebitda amid firm prices and lower CoP in aluminium and zinc," it said.
Nuvama expects demerger of the business to be likely to conclude by end-Q1FY26 as Vedanta seeks lenders’ and equity shareholders’ approval in the upcoming meeting on February 18. Nuvama has retained a 'buy' rating on the stock with a target price of Rs 663 on the stock, post Q3 results.
Among other brokerage firms, Motilal Oswal Financial Services has a 'neutral' rating on the stock with a target price of Rs 500, while Antique Stock Broking has suggested to 'hold' the stock with a target price of Rs 491. Kotak Institutional Equities has suggested to 'reduce' the stock with a target price of Rs 465 per share.