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Business News/ Markets / Stock Markets/  Vedanta shares gain ahead of Q3 results today. Buy, hold or book profit?
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Vedanta shares gain ahead of Q3 results today. Buy, hold or book profit?

Vedanta shares have recently given a breakout at ₹255 apiece level on chart pattern, say stock market experts

Vedanta Q3 results today: Due to the rise in Zinc and Aluminium prices and cost-cutting measures taken by the company, the market is expecting better EBITDA and revenue during Q3FY24. (Photo: AFP)Premium
Vedanta Q3 results today: Due to the rise in Zinc and Aluminium prices and cost-cutting measures taken by the company, the market is expecting better EBITDA and revenue during Q3FY24. (Photo: AFP)

Stock market today: Vedanta shares have opened with marginal gains during the early morning session on Thursday. Ahead of the announcement of Vedanta Q3 results today, the market is expecting improvement in EBITDA on rising commodity prices. However, stock market investors and observers would be keen to see what kind of guidance Vendanta declares as rising commodity prices may enable the metal major to report better revenue in the October to December 2023 quarter.

According to stock market experts, Vendata's Q3 results in 2024 may come as a relief for the company as a rise in zinc and aluminum prices and cost reduction measures taken by the company are expected to fuel Vedanta's Q3 EBITDA in current financial year. They advised Vedanta shareholders and stock market investors to remain vigilant about the guidance as better Q3 numbers may not display the clear fundamentals of the company. They advised Vedanta shareholders to hold Vedanta shares maintaining stop loss at 250 per share.

Vedanta Q3 results preview

Asked about the kind of Q3FY24 results Vedanta may report today, Shreyansh Shah, Research Analyst at StoxBox said, "The growing construction market, coupled with the continuing demand for iron and steel in FY24, poses an opportunistic market for the company in the upcoming period. Rising commodity prices, particularly in the zinc and aluminum segment, and cost reduction measures are expected to improve the EBITDA margins for the quarter. Due to these factors, the company is anticipated to report single-digit revenue growth and mid-teen EBITDA growth on a QoQ basis."

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"The restructuring of the bonds maturing in FY24 and FY25 by its parent company shall provide relief to the company in the coming period. Also, the guidance by the management on the company's demerger schedule shall be viewed closely. We expect the company to report decent revenue and EBITDA growth as we advance," the Stoxbox expert said.

Vedanta share price outlook

On the outlook of Vedanta shares, Sumeet Bagadia, Executive Director at Choice Broking said, “Vedanta shares have given breakout at 255 apiece level on a closing basis. However, it is facing a hurdle at 270 per share level. On breaching this resistance decisively, we can expect Vedanta share price to touch 285 to 290 zones. So, Vedanta shareholders are advised to hold the scrip maintaining stop loss at 250 apiece level."

On the suggestion to fresh investors, Bagadia said, "High-risk investors can buy Vedanta shares at current market price maintaining stop loss at 250 per share level and maintain a buy-on-dips strategy. However, for those who have a low-risk appetite, they are advised to buy Vedanta shares when the scrip sustains above 270 apiece level."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Asit Manohar
Chief Content Producer at Live Mint Digital Team
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Published: 25 Jan 2024, 11:54 AM IST
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