The shares of Vedanta Limited traded flat on Monday’s session and ended the day at Rs 322 levels. The shares ended in green even after the company posted a dip in its quarterly earnings.
The company reported revenue from operations of Rs 33,691 crore in Q3FY23, which grew sideways as compared to Rs 33,697 crore in the same period a year earlier.
Vedanta Limited reported a 42 per cent decline in its net profit which stood at Rs 3,092 crore down from Rs 5,354 crore in the same quarter of the previous year.
In the meeting, the board of directors of the company approved the fourth interim dividend of Rs 12.50 per equity share for the financial year 2022-23, amounting to Rs 4,647 crore. For this purpose, the record date has been set as February 4th, 2023.
Before this, the company paid three interim dividends amounting to a total of Rs 68.5 per share. Along with the fourth dividend, the company will be effectively paying a dividend of Rs 81 per share in FY23. This means that the company has paid a dividend of 25% of its current share price which is Rs 322.
Vedanta Ltd, led by Billionaire Anil Agarwal, is an arm of Vedanta Resources Ltd, which is one of the world’s leading oil and gas and metals firms with operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, and aluminium and power across India, South Africa, and Namibia.
Domestic brokerage firm Edelweiss remains bullish on the stock and has a ‘Buy’ tag with a target price of Rs 428 per share which represents an upside of 33% from the current levels.
“Besides firm zinc prices, aluminium prices too firmed up recently. The benefits of cost savings in aluminium via 3 MTPA alumina expansion in FY24 and usage of captive coal would reduce CoP structurally. Besides, a 16% dividend yield makes the stock attractive,’’ said the brokerage in its reports.
Written by Anoushka Roy
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
