Shares of Vedanta Ltd are in news today after the Vedanta Group said it was exploring collaborations with Japanese technology companies as it continues with its plan to set up a semiconductor plant in Gujarat. Vedanta shares opened on a flat note at Rs 230 today against the previous close of Rs 229.95 on BSE. Market cap of the firm stood at Rs 85,792 crore. A total of 5379 shares of the firm changed hands amounting to a turnover of Rs 21.81 lakh on BSE. Vedanta shares have a one-year beta of 1.1, indicating high volatility during the period.
In terms of technicals, the relative strength index (RSI) of Vedanta stands at 51.7, signaling the stock is trading neither in the oversold nor in the overbought territory. Vedanta shares are trading higher than the 5 day, 10 day, 20 day 30 day but lower than the 50 day, 100 day, 150 day and 200 day moving averages.
Vedanta stock fell to a 52-week low of Rs 207.85 on September 28, 2023 and a 52-week high of Rs 340.75 on January 20, 2023. Vedanta shares have lost 27.05% this year and fallen 17.55% in a year.
Vedanta's semiconductor and display business Global managing director Akarsh K Hebbar during Vibrant Gujarat Global Summit roadshow in Japan had said that it was a $80-billion opportunity for companies willing to come and invest in the electronics manufacturing hub in Gujarat.
"He (Hebbar) outlined Vedanta's ambitious plans to establish semiconductor and display fabs in Dholera SIR, Gujarat, and invited Japanese companies to partner with Vedanta in helping build the country's first electronics manufacturing hub in the state," the statement said.
Hebbar also pointed out that the hub has the potential to attract hundreds of SMEs and create more than one lakh jobs.
Earlier, Vedanta had signed a joint venture deal with Taiwanese electronics manufacturing giant Foxconn which announced plans to invest $19.5 billion in setting up a semiconductor wafer fabrication plant.
However, in July this year, Foxconn pulled out of its joint venture with Vedanta in India. The partnership was aimed at setting up India’s first chip manufacturing unit under a $10 billion government-backed financial incentive scheme.
Vedanta reported a 40% fall in net profit to Rs 3308 crore in the first quarter. Revenue slipped 13% to Rs 33,242 crore in Q1 from Rs 38,251 crore during Q1FY23. The company declared an interim dividend of Rs 18.5 per share.
Vedanta Ltd is a subsidiary of Vedanta Resources Ltd and has operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, and aluminium and power across India, South Africa and Namibia.
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