Bank of America (BofA) has maintained a Neutral rating on Vedanta Limited, setting a target price of ₹470, implying a modest upside from the current market price (CMP) of ₹460.95.
Key highlights from BofA’s note on Vedanta’s management meet:
- FY25 aluminum cost guidance: Vedanta has maintained its cost of production guidance, reflecting stability in operational efficiency in its aluminum segment.
- Oil & Gas: Near-term production is expected to remain muted, signaling cautious optimism in this segment.
- Demerger progress: The company is in the final stages of its demerger process, with shareholder and creditor meetings scheduled in the coming months, which could streamline its business verticals.
- Debt obligations: Management remains confident of meeting Vedanta Resources Limited’s (VRL) yearly interest obligations through brand fees while maintaining a normal dividend payout.
Stock performance: Vedanta’s stock rose by 1.64% yesterday, closing at ₹460.95, reflecting a slight positive market sentiment following the management updates.
BofA’s stance suggests a wait-and-watch approach as investors await further clarity on the demerger process and updates in key operational segments.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a financial advisor before making any investment decisions.
