Vedanta target price raised 15%; M&M stock surges 91% in 5 months

The Anil Agarwal group co value has risen by over 70 per cent this year. Analysts say operational efficiencies, cost reduction, improved operating profit, and proposed demerger have underpinned gains

Analysts have raised the target price (TP) for commodity major Vedanta by 15 per cent this month. The consensus TP compiled by Bloomberg for the stock has risen from Rs 404 at the start of the month to Rs 465. Shares of Vedanta on Tuesday gained 1.4 per cent to Rs 454.

Among the brokerages that have revised the TP upwards are Motilal Oswal, Nuvama, Philip Capital, IIFL, and CLSA.

The Anil Agarwal group firm’s value has risen by over 70 per cent this year. Analysts say operational efficiencies, cost reduction, improved operating profit, and proposed demerger have underpinned the gains.

“Vedanta is continuously striving to reduce costs across its businesses through backward integration, operational efficiencies, and captive power usage (including renewables). The capex plans are progressing well to drive the next level of growth. Vedanta expects cash flows to be sufficient to manage the upcoming debt maturities in FY25 and is exploring refinancing options where feasible. The demerger is on track and is anticipated to be completed by the end of calendar 2024.

The company has obtained clearance from nearly all stakeholders,” said a note by Motilal Oswal, which has a TP of Rs 500 for the stock.

M&M surges 91% in 5 months

Auto major Mahindra & Mahindra (M&M) share price hit a new high of Rs 3,013.95 apiece, gaining 3 per cent on the BSE during Tuesday’s intraday trade on the back of a robust business outlook.

It settled at 2,958.15 at the NSE on Tuesday, a 1.01 per cent rise. 

In the past five months, M&M stock price zoomed 91 per cent. A sharp rally in the stock price has seen the mcap of M&M inch towards Rs 4 trillion. The company’s mcap hit Rs 3.75 trillion in the intraday trade on Tuesday. During the analysts’ call on Friday, M&M highlighted its growth prospect and future business strategy. The event highlighted the company’s capabilities across several businesses, including autos, tractors, e-rickshaws, technology, real estate and finance. It aims to maintain its revenue market leadership position in the SUV segment through aggressive product launches and is banking on XUV 3XO to corner the compact SUV space.