Motilal Oswal's research report on Vedanta
We interacted with the management of Hindustan Zinc (HZL) and Zinc -international (ZI) during Vedanta’s (VEDL) Zinc day at Udaipur on 30 th Aug and visited S. K. mines (SKM) and Debari Smelter on 31 st Aug., 2017. VEDL is targeting to increase Zinc - lead mine production at CAGR of ~15% over FY17 -20E to ~1.6mt. We have upgraded volumes, earnings and target price. Key highlights.
Outlook
VEDL’s consolidated EBITDA has increased by 9/11% to INR349/379b for FY19E/FY20E and target price has in creased to INR361/share (earlier INR316) based on FY19E sum - of-the -parts valuation, 16% Upside. Maintain BUY.
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