Vedanta stock coverage resumed by ICICI securities with a growth forecast of 18 per cent

ICICI Securities recommends buying Vedanta's stock with a forecast of a stock price rise of 18 per cent. Driven by volume, value and cost reduction, the large-cap diversified metals company traded with a cut, even directing the ICICI securities, the domestic brokerage firm, to resume coverage on their stocks.

The stock price for Vedanta has hit its 52-week high price at Rs 211.2 and Rs 523.6 per share, respectively, in recent days. Vedanta Resources' fiscal performance has exhibited significant improvement, driven by strategic diversification across various metals and successful cost optimisation initiatives in aluminium production. Consequently, the company has witnessed a substantial reduction in its deficit. Furthermore, anticipated debt deleveraging of INR 21,000 crore over the next three years is expected to enhance financial sustainability. This robust outlook is likely to sustain a higher dividend yield for the stock, making it an attractive investment proposition.

On October 4, Vedanta Limited announced its second quarter and H1 results for FY2024-25 ended September 30, revealing the highest-ever quarterly and half-yearly aluminium production. In H1 FY2025, Vedanta's aluminium production totalled 1.205 million tonnes, following output of 609,000 tonnes in Q2, which was up by 2.18 per cent from 596,000 tonnes in Q1 FY2025.

In the first quarter of FY2025, Vedanta witnessed a 37 per cent Y-o-Y growth in H1 FY2025 consolidated net profit, amounting to INR 3,606 crore versus INR 2,640 crore in H1 FY2024. Revenue rose 5.6 per cent Y-o-Y to INR 35,239 crore against INR 33,342 crore.