Ahead of the announcement of Vedanta’s fourth-quarter results today, the stock experienced selling pressure during early morning trading. Vedanta’s share price opened lower at ₹380 per share on the NSE and subsequently reached an intraday low of ₹377.10 per share, reflecting a 1.65% intraday loss during Thursday’s trading session.
Market analysts attribute this selling pressure to expectations of weak Q4FY24 results for Vedanta, particularly due to subdued metal prices, including Zinc, Copper, and Aluminium.
According to industry experts, Vedanta’s EBITDA is anticipated to decline to the high single digits on an annual basis, primarily driven by the underperformance of its zinc division. Shreyansh Shah, Research Analyst at StoxBox, highlights the challenges posed by weak metal prices across various segments, along with the subdued performance of the oil and gas segment.
Key areas of interest in Vedanta’s Q4 results include management comments on near-term demand outlook, pricing environment, progress on the expected demerger of its divisions, volume and production guidance, deleveraging efforts, and dividend payout strategy.
Similarly, Amit Goel, Co-Founder and Chief Global Strategist at Pace 360, expects a 36% year-on-year decline in profit for Vedanta, amounting to ₹1,983 crore compared to ₹3,099 crore in the previous year.
Revenue is also projected to decrease by around 10% year-on-year to ₹34,186 crore, primarily attributed to lower commodity prices and reduced volumes in the oil and gas segment. Investors will closely monitor updates on the company’s debt situation, future dividend payout guidance, and the status of the demerger.
Regarding Vedanta’s share price target, Sumeet Bagadia, Executive Director at Choice Broking, advises shareholders to maintain their positions, noting that the stock has established a strong base around ₹360 per share. Resistance is observed at ₹400 levels, and a decisive break above or below this range may indicate a bullish or bearish trend, respectively.
