Vedanta shares hit 52-week high with 'buy' tag from CLSA: Will rally continue?

Vedanta share price: CLSA upgraded Vedanta's rating from 'reduce' to 'buy' and raised the target price to ₹390 from ₹360.

Vedanta share price: The shares of Vedanta rose over 7 per cent to a 52-week high of ₹364.60 today (April 10). This comes after CLSA upgraded Vedanta's rating from 'reduce' to 'buy' and raised the target price to ₹390 from ₹360. In the past year, the stock has gained 34 percent.

Vedanta share price: CLSA upgraded Vedanta's rating from 'reduce' to 'buy' and raised the target price to ₹390 from ₹360.

Vedanta share price: What CLSA said on Vedanta?

CLSA said that the company is favourably positioned to capitalise on the commodity upcycle owing to its diversified exposure as it is making efforts to enhance capacity and profitability across various segments. CLSA also said that the company has indicated a growth trajectory with the group EBITDA expected to rise from $5 billion to $6-$7.5 billion by FY25/27. Although the parent company has seen a significant decline in debt, Vedanta's leverage has increased, it said.

Vedanta share price: Stakes rise in Vedanta

BlackRock, Abu Dhabi Investment Authority, ICICI Mutual Fund and Nippon India Mutual Fund have raised their holdings in Vedanta by nearly 2 per cent over the past four months, news agency PTI said. In Vedanta, Foreign institutional investors (FIIs) have also increased their stakes by 1.2 percent in the same period. This comes after a recent surge in Vedanta's share price which are driven by demerger plans, deleveraging and rising metal prices.

Vedanta share price: What Nuvama said

Nuvama Institutional Equities said, “Vedanta is expected to report an Ebitda uptick of 2 per cent QoQ driven by higher volume in zinc, offset marginally by prices and lower CoP in aluminium. Aluminium is expected to report an Ebitda uptick of 2.5 per cent QoQ. Zinc international is expected to report a normal EBITDA (2x QoQ due to low base).”