Vedanta extends winning streak, up 10% in 5 sessions

NEW DELHI: Shares of aluminium maker Vedanta advanced over 1 per cent in Friday’s trade to take its winning streak to the fifth day after the company said it would boost aluminium production capacity and invest in exploration and production (E&P) activities.

The company on Wednesday said it was looking to invest Rs 30,000 crore in oil exploration and production activities of Cairn India in three years, and take it from 2,50,000 barrels to around 3,50,000 barrels and produce gas equivalent to 100,000 barrels from Rajasthan and offshore.

Last week, the company said it was looking to increase the capacity of its Lanjigarh alumina refinery to 50 lakh tonnes from the current 20 lakh tones. It was also aiming to double the capacity of its Jharsuguda aluminium smelter to 20 million tonnes. The stock has been rallying since then.

On Friday, the stock rose 1.11 per cent to hit a high of Rs 245.50 on BSE. With this, the stock is up 10 per cent since last Friday.

Analysts are expecting the stock to perform well among peers, given that the overhang of Cairn merger is over and the company stands out among the diversified peers with its high concentration on zinc.

Credit Suisse in a recent note projected the company to see a sharp 30-40 per cent Ebitda growth over next two years.