Vedanta Stock Prediction: What to Expect in 2024! Expert Analysis

Vedanta Stock Prediction

Vedanta Limited’s Market Analysis and Expert Opinions

Vedanta Limited, a prominent player in the Indian stock market, has witnessed a substantial decline in its shares, plummeting by approximately 25 percent from the 52-week high recorded in January 2023.

This downturn, reaching its nadir at Rs 340.75 on January 20, 2023, has raised concerns among investors. As of the last trading day, the stock managed a modest uptick of 0.39 percent, closing at Rs 258.50.

This development has led to a reduction in the company’s market capitalization to Rs 96,089.53 crore. While the 52-week low stands at Rs 207.85, there has been a recent uptrend, with Vedanta shares registering a gain of about 10.78 percent in the past month.

The disappointing performance of Vedanta in 2023 begs the question of whether the upcoming year, 2024, holds better prospects for its investors. To delve into this, we turn to the insights provided by market experts.

Expert Opinions

1. Gaurav Bissa – Vice President, Incred Equities:Gaurav Bissa emphasizes a positive turn for Vedanta, noting a sharp rise subsequent to the formation of a double bottom pattern on the weekly chart. He attributes this upward momentum to the robust surge in the Nifty Metal Index. Bissa further highlights a small bullish triangle pattern breakout in the stock, coupled with its proximity to the 55EMA, 89EMA, and 200EMA resistances on the weekly chart. He suggests that a weekly close above Rs 267 levels could pave the way for Vedanta to move towards Rs 300, indicating optimism regarding the stock’s potential recovery.
2. Shiju Koothupalakkal – Technical Research Analyst, Prabhudas Lilladher:Shiju Koothupalakkal acknowledges Vedanta’s decline from Rs 230 levels but expresses optimism about further upside potential. He sees a key breakout if the stock manages to move above the Rs 265 zone, signaling a potential shift in trajectory. Koothupalakkal’s analysis underscores the importance of closely monitoring Vedanta’s movement in the coming sessions to gauge its resilience and potential for recovery.
3. Abhijeet – Tips2trades:Abhijeet adopts a slightly bearish stance on Vedanta based on the daily chart. He identifies strong resistance at Rs 264 and suggests that a daily close below the support of Rs 249 could trigger a near-term target of Rs 230. This cautious perspective reflects the dynamic nature of the market and the need for investors to stay vigilant in the face of potential downside risks.
4. CLSA – Foreign Brokerage:The global perspective comes from CLSA, a foreign brokerage, which has revised its FY24-26 EBITDA estimate for Vedanta downward by 7-12 percent, citing lower margins. This adjustment reflects the broader economic landscape and its impact on Vedanta’s earnings. While the short-term outlook may be challenging, such global analyses contribute valuable insights for investors looking at the bigger picture.
5. Vaibhav Kaushik – Research Analyst, GCL Broking:Vaibhav Kaushik from GCL Broking introduces the macroeconomic factors influencing Vedanta’s prospects. He points out that commodity prices are experiencing a boost due to the fall in the dollar index, and with a decline in crude oil prices, Vedanta could potentially reach Rs 324 in the coming quarter. This insight underscores the interconnectedness of global economic factors and their influence on specific sectors and companies.

Corporate Actions and Financial Strategy

Amidst the challenging market conditions, Vedanta made a significant announcement on December 18 by approving a second interim dividend of Rs 11 per equity share.

This dividend, totaling 1100 percent of the face value of Rs 1 per equity share, amounts to Rs 4089 crore for the financial year 2023-24. The record date for the payment of this dividend was set for Wednesday, December 27, 2023.

This strategic move by Vedanta reflects confidence in its financial position and serves as a means to reward shareholders during a period of market uncertainty.

It’s noteworthy that this is the second interim dividend declared by Vedanta in the financial year, with the first one being Rs 18.50 per share announced in May.

These dividend declarations are indicative of Vedanta’s commitment to returning value to its shareholders, even in the face of market challenges.

Final Thoughts

In conclusion, Vedanta Limited’s current market scenario has sparked discussions among experts regarding its future trajectory.

While the recent downturn has undoubtedly raised concerns, expert opinions present a spectrum of perspectives, ranging from cautious optimism to bearish sentiments.

The global economic context, as highlighted by foreign brokerages, adds another layer of complexity to Vedanta’s outlook.

Investors navigating the stock market must carefully consider these expert opinions, macroeconomic factors, and corporate actions when formulating their strategies.

Vedanta’s second interim dividend and its commitment to shareholder value, despite market challenges, indicate a level of resilience.

As we step into 2024, close monitoring of Vedanta’s performance against the backdrop of evolving market dynamics will be crucial for investors seeking to make informed decisions.