InvestorQ : Is it a good pick to buy Vedanta at the current prices?
Katherine Gonsalves made post

Is it a good pick to buy Vedanta at the current prices?

Answer
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Rutuja Nigam answered.
1 year ago


At Rs.164, the stock of Vedanta is quoting close to its yearly low price. Sales for the June quarter were down by 3.75% at Rs.21,374 crore while net profits were down by 12% at Rs.1351 crore. The net margins remained at around 6.5%, which is healthy by commodity company standards. EBITDA was down 17% for the quarter due to pressure on input costs. The company can be looked at in two ways. The demand for most of its diversified commodity base is likely to look up if China embarks on a stimulus mode, which is very likely. Also the dividend yield is attractive on the stock and you can look at buying Vedanta at these prices from a medium term perspective. Downside risk is quite limited.