The Vedanta share price continued to see strong buying activity from investors, rising nearly 8% to a new 52-week high in morning session on the NSE on Wednesday, April 10. Vedanta’s share price rose over 8% to a 52-week high of ₹364.80 on NSE after opening at ₹347 from ₹338. Around 10:20 am, it traded 7.40% higher at ₹363 each.
On Wednesday, global brokerage company CLSA upgraded Vedanta to a ‘buy’ from ‘underperform’ and boosted the target price to ₹390 from ₹260, representing a 15% upside potential.
According to CNBC-TV18, CLSA believes the company’s diverse exposure positions it to benefit from the commodity upcycle. Furthermore, CLSA noted the company’s attempts to increase capacity and profitability across segments are positive.
“While debt at parent has now declined meaningfully, leverage at the company has increased. Its leverage trajectory and corporate structure will be key to watch.”
CNBC-TV18
Vedanta’s share price has recently been trending upward. It has risen by about 33% in April so far, following a gain of just more than 1% in March.
The stock has been rising on prospects of a recovery in the global manufacturing cycle, which should bode well for this metals and mining behemoth.
On September 28, last year, Vedanta’s share price reached a 52-week low of ₹208 on the NSE. The current market price of ₹364.60 is a 75% increase from the 52-week low in just seven months.
Meanwhile, recent media reports suggested that local mutual funds, BlackRock, and the Abu Dhabi Investment Authority have raised their shares in Vedanta by over 2%.
“The world’s largest asset manager BlackRock, as well as the Abu Dhabi Investment Authority, along with domestic mutual funds like ICICI Mutual Fund and Nippon India Mutual Fund have increased their holdings in Vedanta by almost 2 per cent during the last four months, said market participants.”
PTI
Earlier in April, the company said its board approved fundraising of nearly ₹2,500 crore through debt securities. The fundraising would take place through the issue of non-convertible debentures on a private placement basis.
