- VEDL’s Aluminum business has been instrumental in the ongoing operational momentum, but prices may have hit a near-term ceiling.
- Risks for INR appreciation have gathered pace.
- A potential deal on BPCL could put pressure on the capital structure and the sustainability of the dividend; potential for impairment reversals with the Rajasthan oil and gas assets.
- The complex corporate structure and the parent company’s indebtedness could serve as an overhang.
- On the charts, the risk-reward looks enticing, but current forward valuations are in line with the historical average.
For further details see:
Vedanta: Fairly Valued, Given Balanced Mix Of Headwinds And Tailwinds