Vedanta shares: Up 115% from 52-week low, can they cross Rs 500 mark?

Shares of metal and mining major Vedanta have more than doubled from their 52-week low in nine months. The stock which fell to a 52 week low of Rs 207.85 on  September 28, 2024 ended at Rs 447.10 on Friday, rising 115% during the period. Shares of Vedanta hit their record high of Rs 506.85 on May 22, 2024. In the previous session, the stock ended 1.65% higher at Rs 447.10. Market cap of the firm stood at Rs 1.66 lakh crore.

Vedanta shares have gained 59% in a year and gained 73% in 2024.

A total of 10.47 lakh shares of the firm changed hands amounting to a turnover of Rs 46.90 crore on BSE. Vedanta shares have a one-year beta of 1, indicating average volatility during the period.

In terms of technicals, the relative strength index (RSI) of Vedanta stands at 54.3, signaling the stock is trading neither in the oversold not in the overbought territory. Vedanta shares are trading higher than the 5 day, 10 day, 20 day 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

Here's a look at what analysts said on outlook of the Vedanta stock.

Shiju Koothupalakkal - Technical Research Analyst at Prabhudas Lilladher said, “The stock after witnessing resistance near the Rs 507 zone has slipped down gradually and has the near-term support at Rs 437 zone below which the bias would turn weak. As of now, there is some consolidation happening and a decisive breach above Rs 460 level is necessary to improve the bias and thereafter, anticipate for further rise.”

Shrikant Chouhan, Head Equity Research, Kotak Securities has maintained his sell call on the Vedanta counter.

"Vedanta 4QFY24 consolidated EBITDA came 4% above our estimates mainly led by higher margins in the oil & gas division. Vedanta’s expansion projects in the aluminum division—smelter, refinery and captive coal mines should complete in stages over the next 12-18 months, a key growth driver over FY2025-26E. Management is focused on deleveraging the parent entity (VRL) significantly for the next three years, which has been a key overhang in recent years. We increase EBITDA by 14%/17% for FY2025/26E and Fair Value to Rs 320/share on the back of higher commodity prices," said Chouhan

Investec has upgraded Vedanta to hold and also raised the target price to Rs 473 from Rs 270. The brokerage also raised its FY25 EBITDA estimate by 8% and by 7% for FY26.

Kushal Gandhi, Technical Analyst, StoxBox said, “Vedanta's price action succumbed to profit-taking bouts after surging by 103% in 45 trading sessions. It retraced 27% before it witnessed a sharp technical pullback from the support of 50 daily MA. The stock currently is bolstered by shorter-term EMA offering immediate support and a low-risk to higher rewarding opportunity to initiate fresh long entry. The stock displays a high relative strength compared to the 50 index, with strong buyers’ demand and sectorial strength, which is a positive sign. We recommend buying Vedanta for the target of Rs 508 with a protective stop at Rs 421.”

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.