In just 3 months, Vedanta shares have plummeted by 45 per cent to ₹225 from ₹410. The stock has dropped 48.86% from its 52-week high of Rs.440.75, reached in April 2022. Furthermore, in the last one month, the stock tanked by 27.59%.
However, with the recent price correction, the dividend yield of Vedanta has increased to 19.75%, and the price to book value (P/B) ratio fell to 1.08 from 2.11 when the stock was trading at its 52-week high of Rs. 440.75. In the past 12 months, the company has declared an equity dividend amounting to ₹76.50 per share.
In Monday's trade, the stock gained 3.50 per cent as global brokerage firm JPMorgan turned bullish on the company. It said zinc inventories have declined to multi-decade lows and Vedanta remains best positioned to play higher LME zinc prices.
The stock price reflects LME Zinc at $2,500 per tonne, aluminium at $2,300 per tonne, and Brent crude oil at $80 per barrel, according to the foreign brokerage firm.
The brokerage firm has an "overweight" call on the stock with a target price of ₹490, which hints toward an upside of 115.85 per cent from the June 27 closing price.
Further, Vedanta Ltd. is preparing for its biggest-ever rupee bond sale and is seeking commitments for as much as ₹4,809 crore of 10-year notes, CNBC TV18 reported.
The company paid a dividend of ₹31.50/share to investors, even though the net income dropped nearly 10%.
Vedanta reported its consolidated net profit for the quarter ended March at ₹5,799 crore, down 9.84 per cent from ₹6,432 crore in the same quarter last year.
The revenue from operations climbed to ₹39,342, jumping 41.14 per cent from ₹27,874 crore in the year-ago quarter.
It reported its highest-ever quarterly Ebitda of ₹13,768 crore, up 51 per cent year-on-year. Net debt during the quarter was ₹20,979 crore, declining by ₹6,590 crore since December 31st, 2021.
On the financial ratio side, the company delivered an ROE of 28.75% in the year ending March 31, 2022, outperforming its 5-year average of 13.36%.
An average of 15 analysts polled by MintGenie have a 'buy' call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.