Vedanta gains on reports of likely resumption of mining operations in Goa next week

Vedanta rose 1.77% to Rs 129.15 at 10:37 IST on BSE on media reports that the company is likely to start iron ore mining operations at its Codli mines in Goa on 10 August 2015.

Meanwhile, the S&P BSE Sensex was down 3.75 points or 0.01% at 28,294.38.

On BSE, so far 3.61 lakh shares were traded in the counter as against average daily volume of 4.78 lakh shares in the past one quarter.

The stock was volatile. The stock rose as much as 3.23% at the day's high of Rs 131 so far during the day. The stock rose 1.49% at the day's low of Rs 128.80 so far during the day. The stock had hit a 52-week high of Rs 305.30 on 19 August 2014. The stock had hit a 52-week low of Rs 124.10 on 4 August 2015.

The stock had underperformed the market over the past one month till 6 August 2015, sliding 22.17% compared with the Sensex's 0.32% rise. The scrip had also underperformed the market in past one quarter, declining 42.31% as against Sensex's 5.92% rise.

The large-cap company has equity capital of Rs 296.47 crore. Face value per share is Re 1.

Vedanta's Codli iron ore mine in Goa has a capacity of 3 million tonnes per annum, according to news reports.

It may be recalled that the Goa state government temporarily banned iron ore mining in September 2012 pending verification of documents in the wake of Justice M B Shah Commission's report. During the same month, Environment Ministry had put the environment clearance granted to the mining leases in Goa in abeyance. In October 2012, Supreme Court imposed a blanket ban on mining while hearing a petition. The apex court lifted the ban in April last year, but with conditions.

On consolidated basis, Vedanta's net profit rose 130.6% to Rs 865.94 crore on 0.6% decline in net sales to Rs 16951.88 crore in Q1 June 2015 over Q1 June 2014.

Vedanta (formerly Sesa Sterlite) is a diversified natural resources company. The company produces oil & gas, zinc, lead, silver, copper, iron ore, aluminium and commercial power and has a presence across India, South Africa, Namibia, Ireland, Australia, Liberia and Sri Lanka.

Powered by Capital Market - Live News