Vedanta shares rise 23% from 52-week low; time to buy, sell or hold?

Shares of Vedanta Ltd have lost over 18% from their 52-week high of Rs 340.75 touched on January 20 this year. The metals and mining stock was trading at Rs 277.65 on BSE in the afternoon session today. Market cap of the firm stood at Rs 1.04 lakh crore. A total of 2.01 lakh shares of the firm changed hands amounting to a turnover of Rs 5.62 crore on BSE.

It hit a 52-week low of Rs 224.95 on July 15, 2022. The stock is trading 23.66% higher to its yearly low on BSE.

In terms of technicals, the relative strength index (RSI) of Vedanta stands at 45.4, signaling neither the stock is overbought nor oversold. The stock has a one-year beta of 1.2, indicating high volatility during the period. The PE ratio of Vedanta stands at 3.77 signaling the stock is undervalued compared to its industry. The PE of the mining industry stands at 6.10.

ALSO READ: Suzlon Energy shares trading at six-year high; time to buy, sell or hold?

Vedanta stock is trading lower than the 5 day, 20 day and 50 day, 100 day and 200 day moving averages.

Vedanta shares have lost 11.53% this year and risen 20.54% in a year. In comparison its peer Hindustan Zinc’s stock has zoomed 22% in a year and gained 2.45% this year. Shares of Hindustan Copper climbed 31% in a year and gained 2.70% in 2023. Shares of another sectoral peer NMDC have grown 30% in a year but fallen 11.42% this year.

Vaibhav Kaushik, Research Analyst, GCL Broking said, "The stock is continuously in news from last week Now, the semiconductor tie-up also broke due to financial health. The company is trying to reduce debt from the last 3 quarters but any clear road map is not shown. One should avoid the stock until no clarity comes on debt reduction road map and semiconductor project."

Vaishali Parekh, Vice President — Research at Prabhudas Lilladher said ,"The stock has been moving within a narrow range with support maintained near Rs 275 zone and upside would need a decisive breach above Rs 285 levels for further fresh upward movement indicating a breakout. Currently, it has been hovering near the important 50EMA level of Rs 280 zone and any trigger with a move above Rs 285 levels would improve the bias for further upside targets of Rs 294 and thereafter Rs 305 levels."

ALSO READ: Suzlon Energy shares rebound 235% from 52-week low; can they hit Rs 30 mark?

Abhijeet from Tips2trades said, "Vedanta is sideways on the Daily charts with strong support zone at Rs 268-274 levels. A daily close above the resistance of Rs 280 could lead to targets of Rs 295 in the near term."

Vedanta’s consolidated profit plunged 57 per cent year-on-year (YoY) to Rs 3,132 crore in the March 2023 quarter compared with Rs 7,261 crore in the corresponding quarter last year. Net sales for the quarter fell 5 per cent YoY to Rs 37,225 crore from Rs 39,342 crore in the corresponding quarter last year.

The Anil Agarwal company said its profit before exceptional items stood at Rs 3,885 crore, down 49 per cent.

Consolidated Ebitda for the quarter, Vedanta said, stood at Rs 9,362 crore, with the Ebitda margin coming in at 29 per cent.

Also read: Hot stocks on July 13, 2023: Federal Bank, TCS, Patanjali Foods, Brightcom Group, others

Also read: Stocks that share market analysts recommended on July 13, 2023: Titan, Reliance Industries, Tata Motors, Bharat Electronics, others