Shares of Vedanta Ltd are in focus in today's trade. The shares are trading lower by over 6% despite posting strong December quarter results. The metals-to-oil conglomerate reported a 60% jump in net profit at Rs 7,807 crore on strong base metal prices. In the year-ago period, its net profit was Rs 4,876 crore.
A key reason is the sharp selling pressure on metal stocks today. This is on the back of a steep correction in gold, silver and other base metals. Shares of Hindustan Zinc, Vedanta, Hindustan Copper, NALCO and several other metal stocks fell sharply during the session as a slide in commodity prices weighed heavily on overall sector sentiment. Hindustan Copper tumbled 10.5% to an intraday low of Rs 679.20, while NALCO dropped 9.4% to Rs 388.45. Hindustan Zinc also declined, shedding 7.3% to reach a day's low of Rs 663.30.
Of the 14 analysts with coverage on this stock, 10 have a 'buy' rating on it, and four have a 'hold' call. The upside potential is of 6%, with a 12-month target price of Rs 763.08, as per Bloomberg.
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The decline came on the heels of a steep drop in precious metals. Silver sank 6% on Friday as a firmer US dollar dampened investor sentiment, even though the metal is still poised for an exceptional monthly showing. On the MCX, silver slid 6% to Rs 3,75,900 per kg after having touched an all‑time high of Rs 4,20,048 per kg in the January 29 session. From that peak, the price has now pulled back nearly 10%, or more than Rs 44,000.
The metals-to-oil conglomerate reported a 60% jump in net profit at Rs 7,807 crore on strong base metal prices. In the year-ago period, its net profit was Rs 4,876 crore. Quarterly revenue climbed 19% to Rs 45,899 crore, supported by stronger LME prices, higher sales volumes, improved premiums, and favourable currency movements. In the same quarter last year (Q3FY25), the company had reported revenue of Rs 38,526 crore.
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