Vedanta slides after brokerage cuts target price

Vedanta fell 4.59% to Rs 144.45 after a foreign brokerage firm reportedly cut its target price on the stock by 10% to Rs 180 per share from Rs 200 per share.

The brokerage is reportedly bullish on the stock but cut its target price to Rs 180 per share from Rs 200 earlier. Company-specific triggers are access to Hindustan Zinc's cash, dividend, and potential monetisation of oil-producing assets. The brokerage lowered Vedanta's FY20-22 EBITDA by 6-11% on lower commodity prices, reports added.

Shares of Vedanta lost 13.06% in four trading sessions to its current market price of Rs 144.45, from a recent closing high of Rs 166.15 on 26 September 2019.

Meanwhile, the S&P BSE Sensex was down 171 points or 0.45% to 38,134.03.

On the BSE, 6.31 lakh shares were traded in the counter so far compared with average daily volumes of 12.41 lakh shares in the past two weeks. The stock hit an intraday high of Rs 149.80 and an intraday low of Rs 143.40 so far during the day.

The stock hit a 52-week high of Rs 246.90 on 3 October 2018. The stock hit a 52-week low of Rs 125.70 on 22 August 2019.

Vedanta's consolidated net profit fell 11.9% to Rs 1,351 crore on 3.5% decline in net sales to Rs 21,167 crore in Q1 June 2019 compared with Q1 June 2018.

Vedanta is a natural resource company engaged in the business of manufacturing copper and copper products, and aluminum and aluminum products.

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