Shares of Vedanta Ltd were in focus today after the metals and mining major said it has repaid $100 million to Standard Chartered Bank through release of encumbrance on March 10. Vedanta stock was trading 3.12% lower at Rs 271.50 in early trade today against the previous close of Rs 280.25 on BSE. Vedanta shares have fallen after two days of consecutive gain.
Vedanta shares have lost 27.26 per cent in a year and fallen 12 per cent since the beginning of this year. Total 1.01 lakh shares of the firm changed hands amounting to a turnover of Rs 2.76 crore on BSE.
Market cap of Vedanta fell to Rs 1 lakh crore. The share hit a 52-week low of Rs 206.10 on July 1, 2022 and a 52 week high of Rs 440.75 on April 11, 2022.
In terms of technicals, the relative strength index (RSI) of Vedanta stands at 37.9, signaling neither the stock is overbought nor oversold. The stock has a one-year beta of 1.5, indicating very high volatility during the period. The PE ratio of Vedanta stands at 7.14 signaling the stock is undervalued compared to its industry. The PE of the mining industry stands at 14.39. Vedanta stock is trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Vedanta Resources Ltd had earlier said it has enough means to meet debt repayment liabilities in the coming quarters as it looked to assuage investor concerns around its financial position.
Vedanta Resources is the majority owner of Mumbai-listed mining and oil & gas company Vedanta Ltd.
"The earlier disclosure was made pursuant to facility agreement dated 8 September 2022 entered into between Twin Star Holding Limited (as borrower), Vedanta Resources Limited and Welter Trading Limited (as original guarantors), and Standard Chartered Bank (Singapore) Limited (as original lender)... for the purposes of availing a facility of an aggregate amount of USD 100,000,000. However, the said facility has been repaid and the encumbrance has been released," Vedanta said in a filing to BSE.
Vedanta Resources had said it has pre-paid all of its debt that was due for repayment till March 2023, deleveraging by USD 2 billion in the past 11 months.
Further, it said the company is confident of meeting its liquidity requirements for the quarter ending June 2023.
Meanwhile, the mining conglomerate reported a 42% fall in the consolidated net profit at Rs 3,092 crore for the quarter ended December 31, 2022. In the year-ago period, Vedanta reported a profit of Rs 5,354 crore. Revenue from operations stayed nearly flat at Rs 33,691 crore in Q3FY23 as compared to Rs 33,697 crore in Q3FY22.
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