Vedanta Hits 52-Week High, Board To Consider Dividend On May 16; Buy For TP Rs 542: Nuvama

Billionaire Anil Agarwal's Vedanta Ltd share today hit fresh 52-week high as its Board of Directors are scheduled to hold a meeting on may 16, 2024 to consider first interim dividend and fundraising on May 16, 2024. The company fixed May 25, 2024 as the record date for interim dividend. Current market price of Vedanta share on BSE is Rs 434.35 per share with intraday jump of 4.93%. The market capitalisation of the firm stood at Rs 1,61,623.71 crore. Vedanta shares zoomed 10% in last 1-week and 69% year-to-date.

Cairn Oil & Gas Reserves & Resources (R&R) Jumps 19% YoY to 1.4 Bnboe: The company issued a BSE filing on May 13 informing, Cairn Oil & Gas, India's largest private oil and gas exploration and production company, part of Vedanta Ltd., has announced that its Reserves and Resources(R&R) portfolio has recorded a year-on-year increase of 19% reaching 1.4 Bnboe underpinning its expertise in resource evaluation and development planning. In addition to this robust portfolio, Cairn has a promising exploration portfolio that holds over 5 Bnboe of prospective resources, to help drive India's energy self-reliance."

Vedanta To Consider Dividend, Fundraise On May 16: According to the exchange filing of Vedanta Ltd dated May 13, 2024, "Pursuant to Regulation 29 of Listing Regulations, Notice is hereby given that the meeting of the Board of Directors of the Company (the "Board") is proposed to be scheduled on Thursday, May 16, 2024, inter alia to consider and approve the following:

1. First Interim Dividend on equity shares, if any, for the Financial Year 2024-25. Please note that the record date for the purpose of determining the entitlement of the equity shareholders for the said dividend, if declared, is being fixed as Saturday, May 25, 2024.

2. Raising of funds by issue of equity shares or any other securities convertible into equity shares or a combination of such securities by way of further public offer, rights issue, American Depository Receipts/Global Depository Receipts/Foreign Currency Convertible Bonds, qualified institutions placement, preferential issue or any other method as may be permitted under applicable laws, subject to such regulatory/statutory approvals, including approval of the notice for the general meeting for obtaining the shareholders' approval in this regard, as may be required."

Vedanta Q4: The company declared a 27% fall in Q4 profit ended March 31, 2024 amid soaring finance expenses and sluggish metals prices like zinc, copper, and aluminium. The large cap giant's net profit declined to Rs 1369 crore for Q4 ended March 31, 2024 as against Rs 1881 crore net profit reported in the corresponding quarter of last year. It announced a fall of 6% in its revenue from operations to Rs 34,937 crore for March quarter and remained slightly changed, sequentially.

It stated that short-term and long-term demand remained strong in India. "The demand is expected to remain strong in upcoming years due to thriving infrastructure, manufacturing, automobile and EV/renewable sectors," said Vedanta. Meanwhile, consolidated EBITDA slipped 4% to Rs 8,969 crore for the quarter under review from an year ago.

Should You Buy Vedanta Limited Share? Nuvama has upgraded the target price for Vedanta share to Rs 542 from Rs 394 earlier despite decline in Q4 net profit. "We are jacking up Vedanta's FY25/26 Ebitda estimates by 18%/23% factoring in higher commodity prices and lower CoP in aluminium. We believe the company's debt peaked out in FY24. The aforesaid upward earnings revision lifts the target price to Rs 542 (earlier Rs 394); reiterate 'BUY'," brokerage firm Nuvama said.

Antique Stock Broking also upgraded the target price of Vedanta share despite decline in Q4 performance. The analyst at Antique Stock Broking recommended buy call with target price of Rs 411 from Rs 318 issued earlier. Antique factored in 6% higher aluminum and 9% higher zinc prices, which raised its FY25/FY26 Ebitda estimates by 11%/ 15%.

How To Get Vedanta Dividend? Record date remains crucial role in determining eligibility of shareholders for receiving dividend. Individuals whose name appear in company's shareholders record as on the record date will become eligible to earn dividend announced by the company. Record date is the particular day on which a company confirms the list of shareholders eligible for its dividend distribution. Vedanta Ltd fixed May 25 as the record date for first interim dividend.

Vedanta Limited Share Performance: The 52-week high price of Vedanta Limited share on BSE is Rs 438.50 apiece (as on 14/05/2024) and 52-week low price is Rs 207.85 per share (as on 28/09/2023). Vedanta shares gave return of 56% in last 3-months, zoomed 80% in last 6-months, and gained 58% in last 1-year. In last 2-years, Vedanta share rallied 59% and soared 170% in last 5-years.

Vedanta Dividend History: Vedanta declared 41 dividends since July 23, 2001. In last 1-year, Vedanta declared an equity dividend amounting to Rs 29.50/share. At current share price of Rs 434.35, Vedanta gives an eye-popping dividend yield of 6.75%.

Disclaimer:

The stock has been picked from the brokerage report of Nomura And Antique Stock Broking. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.