Vedanta shares: Is this a stock to buy after Q3 metal production update? | Stock Market News

Vedanta share: The mining major Vedanta Limited released its October to December (third quarter) production data on Friday, January 3.

Vedanta Ltd shares closed 1.8 per cent higher at ₹457.90 in Friday’s trade, compared to ₹449.80 at the previous close. The company filed its production data with BSE after market hours on Friday.

According to stock market experts, the company showed mixed performance in the third quarter operational updates. Vedanta had some notable achievements and faced certain challenges across key business segments. 

Vedanta Q3 metal production

Vedanta’s Zinc production in India dropped 2 per cent to 265,000 tonnes in the third quarter of the financial year 2024-25, compared with 271,000 tonnes in the same period of the previous financial year, according to the BSE filing.

The drop in Zinc production in India was noted in the mined metal segment.

On the other hand, total aluminium production increased 3 per cent year over year to 614,000 tonnes in the third quarter of the financial year 2024-25, compared to 599,000 tonnes in the same period a year ago.

The company’s aluminium production comes from two segments; one in Jharsuguda and the other under the Bharat Aluminium Company (BALCO), a subsidiary. 

Vedanta Q3 Update 

Speaking on Vedanta’s Q3 update, Anshul Jain, Head of Research at Lakshmishree Investment and Securities, said, “Vedanta Ltd showcased a mixed bag of performance in its Q3 FY25 operational update, with notable achievements and some challenges across key business verticals.”

On the aluminium and alumina front, Jain noted, “Aluminium production reached 614 kilotonnes (kt), reflecting a 3 per cent year-on-year (YoY) growth but slipping 1 per cent quarter-on-quarter (QoQ). For the nine-month period, output climbed 3 per cent YoY to 1,819 kt. Alumina production for the quarter rose 7 per cent YoY, driving a robust 16 per cent YoY increase to 1,542 kt over nine months.” 

“Zinc India achieved a record nine-month refined metal production of 783 kt, up 3 per cent YoY, supported by improved grades and operational efficiencies. Zinc International posted a strong 12 per cent YoY and 6 per cent QoQ increase in mined metal output, reaching 46 kt in Q3,” the stock market expert pointed out.

“Oil and gas production dipped 19 per cent YoY and 5 per cent QoQ to 99.4 kboepd, although volumes from the Jaya discovery under OALP added positively. Ferrochrome production hit a nine-month record of 72 kt, soaring 35 per cent YoY with the commissioning of a new furnace,” Jain said.

“Pig iron output rose 7 per cent YoY and 14 per cent QoQ due to furnace upgrades, while ore production surged 77 per cent QoQ as monsoon impacts eased,” said the equities expert.

“Vedanta’s performance highlights its operational resilience amid varied sectoral trends,” said Jain. 

Vedanta share price outlook

Speaking on the outlook of Vedanta shares, Mahesh M Ojha, AVP — Research at Hensex Securities, said, “Vedanta shares look positive on the chart pattern and can reach up to ₹500 soon. Vedanta share price has made a strong base at ₹438.”

“So, Vedanta shareholders are advised to wait for Vedanta Q3 results in 2024-25 and hold the scrip, maintaining a stop loss below ₹438. Fresh investors can also initiate momentum buying in Vedanta shares for the short-term target of ₹500, keeping stop loss below ₹438,” suggested Ojha.

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.