Vedanta stock surges 4% as JPMorgan bully

Shares of the multinational miner Vedanta gained over 4 per cent today as investment bank JPMorgan bullied the Anil Agarwal-owned firm. The target price was Rs 490, 121 per cent higher than the previous close of Rs 221.40 The large cap stock opened at Rs 227.65 with a gain of 2.82 per cent.

It rose 4.4 per cent on the BSE after it reached an intraday high of Rs 231.15. Vedanta stock is trading lower than the 50 day, 20 day, 50 day, 100 day and 200 day moving averages. In a year, the stock has fallen 13 per cent and lost 32 per cent in 2022.

The firm's stock changed hands in total of 4.73 lakh shares, a turnover of Rs 10.78 crore on the BSE. The firm's market cap was increased to 85, 030 crore.

JPMorgan said that the zinc inventories have declined to multi-decade lows and Vedanta is best positioned to play higher LME zinc prices. The London Metal Exchange LME stated EPS and DPS would be 10 per cent higher than the estimates by JPMorgan, based on the London Metal Exchange's zinc, aluminum and oil prices.

The current stock price assuming a 10 per cent dividend yield at the current market price reflects the LME zinc price at $2,500 per tonne, LME aluminum at $2,300 per tonne and Brent at $80 bbl, the brokerage said.

The target price of Centrum Broking was Rs 507 on June 3 against the price of Rs 318.9 on the BSE.

The mining major reported a net profit of Rs 5,799 crore for the quarter ended March 2022, down 9.84 per cent from Rs 6,432 crore in the same quarter last year.

Revenue from operations rose 41.14 per cent from Rs 27,874 crore in the year ago quarter. The board of the company cleared the first interim dividend of Rs 31.5 per equity share for the financial year 2022 -- 23, amounting to Rs 11,710 crore.