VEDL - Vedanta: A Lot Can Happen In Three Months

• The parent company’s desire to increase its stake in VEDL via an open offer has been instrumental in driving the stock.
• It remains doubtful if VRL was able to garner the entire 17.5% targeted stake as the offer price was still significantly below the range quoted by key institutional investors.
• The potential acquisition price of BPCL has gone up even further and VEDL could be better served by diverting its attention to rebuilding its copper capacity.
• The aluminum CoP moved up sequentially, closer to the $1,400/tonne mark, although the company is in the midst of pushing through structural changes that could bring this down to the $1,200/tonne.
• On the charts, the stock still has upside potential for another ~15-16%, but the outcome of key corporate actions could result in a lot of uncertainties.

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