InvestorQ : I have 7 long positions in vedanta at ?150 average. please suggest
satish made post

I have 7 long positions in vedanta at ?150 average. please suggest

Answer
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Anu Biswas answered.
1 year ago


The stock is now quoting at Rs.140 and that must entail a large MTM loss for you. I am not sure if you are prepared for the MTM loss. But let me tell you about the prospects of the stock. There are two things that are working against this stock at this point in time. Firstly, there are corporate governance issues with respect to the Vedanta group as they have not really maintained Chinese walls between their personal ownership and corporate ownership. That is one reason their valuations have suffered. 

Secondly, Vedanta is one of the world’s largest commodity companies and it's the stock price is dependent on commodity prices. Of late, with China under pressure due to trade war issues, these commodity prices have been under pressure. That is the main reason why the price of Vedanta has suffered so much and there could be more downsides. You must at least look to reduce your positions from 10 to 5 lots and keep a stop loss below which you will not hold on. That will let you also have a peaceful sleep.