Vedanta share price: Investor interest in Vedanta’s shares remained robust as the stock surged by nearly 8 percent, reaching a new 52-week high during morning trading on the NSE on Wednesday, April 10th. Vedanta’s shares opened at ₹347, up from the previous day’s close of ₹338, and climbed to ₹364.80, marking an increase of almost 8 percent. By around 10:20 am, the stock was trading at ₹363, reflecting a gain of 7.40 percent.
On Wednesday, Vedanta’s stock saw a significant increase following an upgrade from global brokerage firm CLSA, shifting its rating from ‘underperform’ to ‘buy’ and elevating the target price to ₹390 from ₹260, indicating a potential upside of 15 percent.
According to CNBC-TV18 reports, CLSA stated that the company stands in a favorable position to capitalize on the commodity upcycle owing to its diversified exposure. Furthermore, CLSA expressed optimism regarding the company’s initiatives to enhance capacity and profitability across various segments.
CNBC-TV18 reported CLSA’s observation that although the debt at the parent company has notably decreased, the leverage at Vedanta has risen. CLSA emphasized that monitoring the company’s leverage trend and corporate structure will be crucial.
In the recent period, Vedanta’s share price has been consistently increasing. It has experienced a notable uptrend, with a surge of approximately 33 percent in April. This follows a modest gain of just over 1 percent in the previous month.
The stock has been rising due to anticipated improvements in the global manufacturing cycle, which are anticipated to benefit this metals and mining behemoth.
Vedanta’s share price reached its 52-week low of ₹208 on September 28 last year on the NSE. Since then, at the current market price of ₹364.60, it has experienced a significant surge of approximately 75 percent from its lowest point within seven months. -Vedanta share price
Recent media reports indicate that domestic mutual funds, BlackRock, and the Abu Dhabi Investment Authority have collectively raised their holdings in Vedanta by nearly 2 percent over the past four months.
According to a PTI report on April 7, market participants stated that BlackRock, the world’s largest asset manager, alongside the Abu Dhabi Investment Authority, as well as domestic mutual funds such as ICICI Mutual Fund and Nippon India Mutual Fund, have collectively raised their holdings in Vedanta by nearly 2 percent over the past four months.
The PTI report also added that during the same period, foreign institutional investors (FIIs) augmented their stake in the conglomerate by 1.2 percent.
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In April, the company announced that its board had sanctioned the raising of approximately ₹2,500 crore through debt securities. This fundraising would occur through the issuance of non-convertible debentures on a private placement basis.
