Discover the latest Vedanta share price targets after Q3 results and explore expert insights on potential trajectories. Unravel the impact of Q3 earnings on Vedanta’s market value.
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Vedanta share price target after Q3 results
Vedanta Ltd has announced results for the third quarter of FY24. On a quarter-on-quarter basis, net profit jumped 112 per cent and EBITDA jumped 21 per cent. The third quarter also recorded the highest revenue. Vedanta shares are currently trading at Rs 260. After the results, the brokerage has advised buying and has given an aggressive target of more than 40 per cent upside.
Vedanta Q3 Results
In the third quarter, Vedanta Ltd’s net profit jumped 112% quarter-on-quarter and 8% year-on-year to Rs 2868 crore. Revenue stood at Rs 34968 crore with a growth of 4% quarter-on-quarter and YoY. EBITDA stood at Rs 8677 crore with a growth of 21% quarter-on-quarter and 22% YoY. Ebitda margin stood at 29%. It grew 438 basis points on a quarter-on-quarter basis and 507 basis points on a year-on-year basis.
How much is the debt on the company and how much is the cash reserve?
In Q3, Vedanta Ltd generated a stellar cash flow of Rs 4306 crore. Return on capital employed (ROCE) stood at 23% and grew by 140 bps on a quarter-on-quarter basis. Vedanta Ltd’s gross debt as on December 31, 2023 stood at Rs 75227 crore. Net debt stood at Rs 62,493 crore. Cash and Equivalent is Rs 12734 crore.
Why does the brokerage trust Vedanta Ltd?
The company’s EBITDA was better than expected, the brokerage said in its report. The company has successfully undertaken debt restructuring with the parent company Vendata Resources. The company’s focus in FY25 is on expansion in India. So, it is generating additional cash flow. In FY 25-26, it is expected to get a dividend of Rs 40-40 every year. It is expected to complete monetisation of steel assets in the first half of FY25.
Mutual fund confidence on Vedanta shares
Mutual funds have increased their stake in Vedanta Ltd. On a December quarter basis, DIIs share was 11.26 per cent, 10.66 per cent in the September quarter and 10.05 per cent in the June quarter. Mutual funds have increased their stake from 0.83% to 1.42%. The share of FIIs was 7.74 per cent in Q3 and 7.82 per cent in Q2. It was 7.48 per cent in the June quarter.
Conclusion
In conclusion, Vedanta Limited’s Q3 results reflect its resilience and ability to navigate challenging market conditions. While short-term fluctuations in share price are inevitable, the company’s strong fundamentals and strategic initiatives position it well for long-term value creation.
FAQs
- Is Vedanta a good investment after its Q3 results?
- Vedanta’s Q3 results indicate robust performance, making it an attractive investment opportunity for long-term investors.
- What are the key drivers of Vedanta share price movement?
- Factors such as commodity prices, operational efficiency, regulatory environment, and global economic conditions influence Vedanta’s share price.
- How do analysts forecast Vedanta share price target?
- Analysts use a combination of fundamental and technical analysis, considering various factors such as revenue growth, profitability, industry trends, and market dynamics.
- What risks should investors consider when investing in Vedanta?
- Risks associated with commodity price volatility, regulatory changes, geopolitical uncertainties, and operational challenges should be carefully evaluated by investors.
- Where can I find more information about Vedanta’s financial performance?
- Detailed financial reports and investor presentations are available on Vedanta Limited’s official website.