As the Vedanta share price surged by nearly 8% to reach a new 52-week high in morning trade on the NSE on Wednesday, April 10, investors’ buying interest remained strong. After closing at ₹338 the previous week, the Vedanta share price opened at ₹347 and surged by almost 8% to reach ₹364.60, its 52-week high, on the NSE. It was trading 7.40 percent higher at ₹363 per share at 10:20 am.
Vedanta’s stock price surged on Wednesday as a result of global brokerage CLSA upgrading the stock from a “underperform” rating to a “buy” and increasing the target price from ₹260 to ₹390, suggesting a potential 15% upside.
According to CLSA, as seen by CNBC-TV18, the company’s diverse exposure puts it in a good position to profit from the commodity upcycle. Furthermore, CLSA stated that the company’s initiatives to increase profitability and capacity across all categories are promising.
“The parent company’s debt has now significantly decreased, but the company’s leverage has increased. Regarding Vedanta stock, CLSA stated as much on CNBC-TV18. “Its leverage trajectory and corporate structure will be key to watch.”
The share price of Vedanta has recently been rising. Following a gain of just over 1% in the prior month, it has increased by nearly 33% so far in April.
A recovery in the global manufacturing cycle is anticipated to benefit this massive mining and metals company, as evidenced by the rise in the stock.
On September 28, of last year, the price of Vedanta shares on the NSE fell to ₹208, its 52-week low. In just seven months, it has increased by roughly 75% from its 52-week low to the current market price of ₹364.60.
Recent media reports, however, claimed that over the previous four months, domestic mutual funds BlackRock and Abu Dhabi Investment Authority had raised their stakes in Vedanta by nearly two percent.