Metal stock in focus after management expects 11 MTPA iron ore production by FY25

Metal stock in focus after management expects 11 MTPA iron ore production by FY25


Shares of this large-cap company, which operates across metals, oil and gas, and power generation sectors, rose 5 percent on Wednesday after it issued strong management guidance and set a target of 11 million tons per annum in iron ore production by FY25. 

Price Variation 

During Wednesday’s trading session, the Vedanta Ltd share price surged 2.4 percent to a 52-week high of Rs.526.60 per share, up from its previous close of Rs.514.35 apiece. The price has since retreated and is currently trading at Rs.523.75 per share. Vedanta Ltd has a dividend yield of 6.75 percent and a high dividend payout ratio of 259 percent.

Management Guidance 

Vedanta Ltd has expressed confidence in meeting its FY ’25 production goals, which include reaching 11 million tons per annum from its iron ore business. The company is actively progressing towards these targets, with its subsidiary, Hindustan Zinc, reporting strong performance in the second quarter, producing 2,56,000 tons of mined metal and 2,62,000 tons of refined metal. 

In addition to its iron ore operations, Vedanta is focused on expanding its BALCO smelter and boosting aluminum production. The company aims to achieve a capacity of 3.1 million tons per annum, with 90 percent of the output coming from value-added products by FY ’26. These efforts are part of Vedanta’s broader strategy to strengthen its position in the metals and mining sector. 

Business Segments and Presence 

Vedanta operates across a wide range of sectors, with a primary focus on metals, including aluminum, copper, zinc, lead, and iron ore. The company is also engaged in oil and gas exploration and production, as well as commercial power generation. 

In addition to these core activities, Vedanta is involved in the production of pig iron and metallurgical coke, along with providing shipping and port services. The company has a significant presence in India and various regions globally, including the US, Asia-Pacific, Europe, the Middle East, and Africa. 

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Financial Performance 

In its recent financial update for the quarter ending September 2024, Vedanta Ltd reported revenue from operations of Rs.37,634 crore, reflecting a 3.3 percent decline from Rs.38,945 crore in Q2 FY24. Moreover, net profits increased significantly to Rs.5,603 crore from net loss of Rs.915 crore in the same period. 

Shareholding Pattern 

As per the September 2024 shareholding pattern, the promoters of Vedanta Ltd hold a 56.38 percent stake, while Foreign Institutional Investors hold a 11.45 percent stake. Domestic Institutional Investors and Retail investors hold a stake of 16.29 percent and 15.64 percent, respectively in the company.

Company Overview 

Vedanta Ltd is a leading Indian multinational company based in Mumbai, specializing in mining and natural resources, including metals, oil and gas, and power generation. Originally founded as Sterlite Industries in the 1980s, it rebranded after merging with Sesa Goa in 2015. 

The company has a strong global presence and is focused on growth through significant investment plans. Recently, Vedanta announced a major investment to enhance its operational capabilities across various sectors. 

Written by – Siddesh S Raskar 

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.


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