GR Finance
GR Finance
May 25, 2025 at 11:15 AM
*Weekly Hidden Gem! 💎* *Vedanta Ltd (#vedanta)* 🛒 CMP: ₹440 ⭐ Rating: Buy 🎯 Target Price: ₹600 📈 Potential Upside: 36% 🟢 Market Cap: ₹1,71,861.56 crore 🔸 Vedanta is a diversified natural resources giant specializing in aluminium, zinc-lead-silver, oil & gas, power, iron ore, steel, and copper. 🔸 It holds ~63% stake in Hindustan Zinc—India’s top zinc/lead producer and world’s 4th largest silver producer. 🔸 Aluminium division sees strong growth: smelting capacity to rise from 2.5 to ~3.1 MTPA by FY27E, with full captive integration via Lanjigarh refinery (6 MTPA). 🔸 Hindustan Zinc remains a cash cow, contributing ~40% of FY25 EBITDA. Mined metal and smelting capacity expansions to drive long-term gains. 🔸 Power & Steel boost: 2200 MW new thermal projects to double merchant power EBITDA by FY27E; steel capacity to rise to 3.5 MT, and iron ore to 30 MTPA. 🔸 Demerger plan aims to unlock value, especially for high-growth Aluminium & Power businesses. 🔸 Strong balance sheet (Net Debt/EBITDA ~1x by FY27E), >20% return ratios, and attractive ~9% dividend yield supports our positive view. If this one’s in your watchlist, hit 👍🏻
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