Vedanta's debt restructuring removes overhang, says Nuvama; upgrades stock to Buy, raises target
Vedanta parent company Vedanta Resources, according to a recent report from brokerage house Nuvama Institutional Equities, removes a significant overhang on Vedanta stock. Vedanta's target valuation should be increased, as supported by the debt restructuring.
The brokerage upgrades the Vedanta stock to a "BUY" rating and raises the target price to ₹362 (from ₹265). The restructuring, according to the brokerage, is more expensive but allows Vedanta to concentrate on continuing capital expenditures related to aluminium and zinc as well as the sale of its steel and iron ore assets, which will generate additional cash flows, for a period of two years.
Also Read: Stocks to buy: Heritage Foods, Bank of India among top fundamental picks by HDFC Securities The brokerage feels that even more upside potential can be unlocked by the monetisation of steel and iron ore assets, vertical business split, etc. "Exciting news! Mint is now on WhatsApp Channels
. Read more on livemint.com
