Stock Name : Vedanta Ltd Background : Vedanta Resources Limited is a globally diversified Natural Resources Company with interests in zinc-lead-silver, Iron ore, Steel, Copper, Aluminium, Power, Oil and Gas.Mining giant Vedanta Ltd contributes around 0.40 per cent or Rs 67,554 crore to India’s GDP through its operations, according to a study .( article on economictimes. com) Basis our assumption of growth in earnings at 10% to 15% and following the dividend discount model for next few years with a healthy dividend payout ratio of 85% , the stock can see a price of 197 in near future Stock is trading close to its 200 day moving averages with a healthy delivery volume . Concerns / Red Flag : Vedanta lost close to $200 mn due to shut down of the tuticorin copper smelting plant . However this is fairly priced by the market and any positive move by the government on the copper plant will sky rocket the stock . Trade / Investment Advise : Add to Watchlist.
