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Buy Vedanta; target of Rs 425: Edelweiss

Edelweiss is bullish on Vedanta has recommended buy rating on the stock with a target price of Rs 425 in its research report dated April 18, 2018.

April 18, 2018 / 03:54 PM IST
 
 
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Edelweiss' research report on Vedanta

We view Vedanta’s (VEDL) acquisition of Electrosteel Steels (ELSS) as value accretive in the near term as: i) EV/t of USD546 is significantly lower compared to recent transactions; ii) EBITDA/t accretion potential via captive iron ore use & capacity ramp up; and iii) opportunity to expand beyond 2.51mtpa.

Outlook


We see additional benefits of economies of scale if VEDL decides to expand the plant further as it has sufficient iron ore capacity in Jharkhand to support a 5mtpa plant. We maintain ‘BUY/SO’ with TP of INR425 on FY20E EBITDA.For all recommendations report, click here

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Broker Research
first published: Apr 18, 2018 03:54 pm

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