Vedanta Q3 Results Anticipation: Focus on Commodity Prices and Guidance/AFP
Vedanta Q3 Results Anticipation: Focus on Commodity Prices and Guidance
Vedanta shares opened with marginal gains ahead of the announcement of its Q3 results, with the market anticipating improved EBITDA fueled by rising commodity prices. Stock market experts suggest that Vedanta’s Q3 results in 2024 may bring relief to the company, driven by the increase in zinc and aluminum prices and cost reduction measures. Investors are advised to pay close attention to the guidance provided, as better Q3 numbers may not fully reveal the company’s fundamentals.
Key Points from Stock Market Experts:
- Factors Influencing Q3FY24 Results:
- The construction market’s growth and sustained demand for iron and steel in FY24 present opportunities for Vedanta.
- Rising commodity prices, particularly in zinc and aluminum, along with cost reduction measures, are expected to contribute to improved EBITDA margins for the quarter.
- Anticipation of single-digit revenue growth and mid-teen EBITDA growth on a quarter-on-quarter (QoQ) basis.
- Debt Restructuring and Demerger Schedule:
- The restructuring of bonds maturing in FY24 and FY25 by Vedanta’s parent company is seen as providing relief to the company.
- The market will closely monitor guidance from the management regarding the company’s demerger schedule.
- Share Price Outlook and Recommendations:
- Vedanta shares recently broke out at ₹255 apiece, closing above this level. However, they face resistance at ₹270 per share.
- A decisive breach of the ₹270 resistance could lead to Vedanta’s share price reaching ₹285 to ₹290 zones.
- Shareholders are advised to hold the scrip with a stop loss at ₹250 per share.
- High-risk investors can consider buying Vedanta shares at the current market price, maintaining a stop loss at ₹250 per share, and adopting a buy-on-dips strategy.
- For those with a lower-risk appetite, purchasing Vedanta shares is advisable when the stock sustains above ₹270 per share.
As Vedanta prepares to disclose its Q3 results, market participants are closely watching for indications of the company’s financial health and future prospects, especially in the context of commodity price movements and management guidance.