- Vedanta’s net income for the third quarter stands at 35.5 billion rupees, surpassing estimates with a 77% year-over-year increase.
- The company reported a revenue of 385.3 billion rupees, marking a 10% increase compared to the previous year.
- Total costs for the quarter were 331.3 billion rupees, showing a modest rise of 2.8% from last year.
- Finance costs recorded a slight increase of 0.8% at 24.4 billion rupees, which is lower than the estimated 25.37 billion rupees.
- Other income dropped by 13% year-over-year, resulting in 6.8 billion rupees.
- Zinc international sales experienced a 42% growth, achieving 10.5 billion rupees but fell short of the 12.11 billion rupees estimate.
- Copper sales increased by 7.8%, reaching 58 billion rupees, but did not meet the estimate of 60.34 billion rupees.
- Iron ore sales were down by 25%, totaling 18.7 billion rupees and missing the 19.3 billion rupees estimate.
- Following the earnings release, Vedanta’s shares extended gains to 1.8% in Mumbai.
- Shares rose by 2.1% to close at 441.45 rupees with a trading volume of 6.32 million shares.
- Stock recommendations included 9 buys, 5 holds, and 1 sell.
Vedanta Ltd on Smartkarma
Analyst coverage of Vedanta Ltd on Smartkarma shows that Nimish Maheshwari, in the report titled “Event Driven: Vedanta Ltd: A Story of Wealth Creation Through Demerger,” expresses a bullish sentiment. Vedanta Ltd plans a multi-segment demerger to unlock value by separating core operations into standalone entities, aiming to eliminate conglomerate discount and attract fresh capital for growth. The restructuring is envisioned to eliminate conglomerate discount, foster specialized leadership, and attract fresh capital, potentially enhancing overall valuations and fueling long-term growth across diversified segments. Despite governance concerns and cyclical commodity risks, the pure-play listings resulting from this demerger could lead to re-ratings, offering heightened returns but requiring vigilance on execution and corporate transparency.
A look at Vedanta Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Vedanta Ltd shows a strong performance in terms of Dividend, Growth, Value, and Momentum. The company excels particularly in the Dividend category, indicating consistent payouts to its shareholders. With a solid score in Growth, Vedanta demonstrates potential for expansion and profitability in the long run. The Value and Momentum scores also suggest promising prospects for investors looking at the stock. However, the Resilience score is relatively lower, highlighting some potential vulnerabilities that could impact the company’s stability in challenging market conditions.
Vedanta Limited, a base metals mining and production company, is positioned well for long-term success based on the Smartkarma Smart Scores analysis. With a focus on zinc, iron ore, copper, silver, and aluminium, along with its operations in power plants, Vedanta has a diverse portfolio catering to global markets. Investors might find Vedanta appealing due to its strong emphasis on dividends, growth potential, attractive value proposition, and positive momentum, despite some resilience concerns. Overall, Vedanta Ltd presents a compelling opportunity for investors seeking exposure to the base metals sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
