BoFA has upgraded Vedanta to “buy” from its earlier ranking of “neutral” and raised its worth goal by 75% to ₹840 from ₹480 earlier.
The improve comes on the again of BoFA’s bullish view on aluminium, supportive silver costs, and a wholesome dividend yield of round 6%.
Additionally, vital deleveraging on the mother or father firm minimizes the danger of a rise in brand-fee fee of inter-corporate loans, BoFA wrote in its observe.
On the again of upper aluminium forecasts, larger honest worth for Hindustan Zinc, a depreciation within the rupee in opposition to the US Dollar, and a discount within the holding firm low cost to five% to fifteen%, the brokerage has raised its monetary yr 2026 – 2028 Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) estimates for Vedanta by 16% to 21%.
BoFA’s worth goal for Vedanta is the third highest on the road for the inventory after Citi (₹900) and Systematix Group (₹898).
15 analysts have protection on the mining conglomerate, of which 11 have a “buy” ranking and the opposite 4 have a “hold” advice. No analyst monitoring the inventory has a “sell” advice on it.
Shares of Vedanta ended 2.5% larger on Tuesday at ₹698.5. The inventory is up 16% to date within the first two months of the yr.
