Subdued commodity prices take a toll on Vedanta; stock hits 52-week lows

While oil & gas and zinc segments may provide some cushion to earnings, declining base metal prices will keep sentiment subdued

Shares of Vedanta, which have been on a downward trajectory since September last year, hit 52-week lows on Monday. While weak base metal prices hurt by trade war remain a worry, fragile broader equity indices too have contributed to the stock downslide. The June quarter performance, announced a few days, back did not encourage either with net profit down 12 per cent on a four per cent fall in revenues. 

For the producer of base metals, Vedanta’s aluminium segment has disappointed due to pressure on realisations, offsetting the better performance of oil and gas segment and Zinc India. However, unwinding