Reduce Vedanta: target of Rs 120: ICICI Securities

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

ICICI Securities research report on Vedanta

Vedanta reported higher than expected Q1FY21 numbers. Aluminium EBITDA constituted ~72% of the EBITDA beat. The segment’s EBITDA/te surprised at US$360/te, of which US$101/te was on account of RPO liability reversal. Adjusted for RPO liability, costs reached US$1343/te, down ~US$110/te QoQ and ~US$420/te YoY. Power contributed ~12% of the EBITDA beat, which can be attributed to 97% Talwandi Sabo (TSPL) PAF, while sales from TSPL was only 643mn units (down 76% YoY). TSPL receivables reduced in FY20. There has been significant cost reduction in Zinc International (22% YoY and 24% QoQ) and currency depreciation of the host countries played a big part. Production at Gamsberg is still at 25kte as at June.

Outlook

Covid lockdown makes assessment difficult for Rajasthan assets. The delisting process is underway; US$300mn again has been extended as an intercompany loan to Vedanta resources. Downgrade to REDUCE from Hold.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More