Vedanta Shares Rise After Record Dividend, Q4 Results
Here’s what analysts have to say about Vedanta’s Q4FY22 results.
Analysts remained upbeat on Vedanta Ltd. after the fourth quarter citing its record dividend payment and encouraging growth outlook.
The miner’s board of directors in a meeting held on April 28 approved its first interim dividend of Rs 31.50 per share.
The Anil Agarwal-led company saw its net profit jump 39% sequentially in the three months ended March 31, but missed estimates. Its aluminium division recorded the highest growth in operating income among other segments even as cost of coal rose. Its consolidated net debt rose 16.4% year-on-year but fell 23.9% sequentially in the reported quarter.
Shares of Vedanta rose nearly 2%, the most in three days. Of the 18 analysts tracking the company, 13 maintain 'buy', three suggest 'hold' and two recommend 'sell'. The return potential of the stock is 11.3%.
Here’s what analysts have to say about Vedanta’s Q4 FY22 results.
CLSA
Maintains ‘outperform’ rating with a target price of Rs 400 apiece.
In line results and a robust dividend.
Volume growth for FY23 implies little year-on-year growth across segments.
Contrary to its past policy, Vedanta has hedged 15% of its commodity exposure.
Announces Rs 31.5 apiece interim dividend for FY23.
Dividend implies inflow of $1.1 billion to the parent Vedanta Resources.
Payment to parent should cater to debt repayments.
Vedanta’s net debt fell sequentially to Rs 21,000 crore.
Ex-Hindustan Zinc net debt was Rs 47,600 crore.
JPMorgan
Maintains ‘overweight’ rating with a target price of Rs 490 apiece.
Record dividends with record earnings.
Capex pick up should drive volume growth across segments.
Higher zinc prices should offset cost pressures in aluminium.
Vedanta’s relative outperformance should continue due to positioning, yield, growth, pipeline.
Vedanta is our top pick in base metals in India.
Credit Suisse
Maintains ‘outperform’ rating, raises target price to Rs 411 from Rs 490 apiece.
In line quarter; encouraging outlook.
Dividend yield remains high.
Broad based across all operations, driven by higher volumes and unit realisations.
Vedanta trading at an inexpensive 4.1 times 12 month forward Ebitda.
