Bank of America (BOFA) has maintained a ‘Neutral’ rating on Vedanta Limited, setting a target price of ₹470. This follows a detailed management meeting where Vedanta provided updates across its aluminum, oil & gas (O&G), and financial verticals. The company reaffirmed its FY25 aluminum cost of production guidance, indicating operational resilience despite challenging market conditions. However, near-term production in the oil & gas segment is expected to remain muted, potentially impacting overall performance.
Significant progress has been made in Vedanta’s demerger plans, with shareholder and creditor meetings scheduled in the coming months. Management expressed confidence in Vedanta Resources Limited (VRL) meeting its annual interest obligations through brand fees, alongside a normal dividend payout policy.
In recent developments, Vedanta has been active in international markets. The company signed a $2 billion agreement with Saudi Arabia to develop major copper projects, including a 400,000-tonne-per-year copper smelter and refinery, and a 300,000-tonne-per-year copper rod facility.
Additionally, Vedanta Resources accepted $800 million in bids for two planned dollar bonds aimed at refinancing debt due in 2028, with coupon rates of 10.25% for three-year and six-month bonds, and 11.25% for seven-year bonds.
