UK-based Vedanta's Indian arm has outperformed its peers in terms of sales and earnings growth and is still available at a lower P/E multiple. Profits rose 63% on higher aluminium prices and better copper treatment and refining margins. While softening of base metal prices due to sluggish demand is a concern, earnings growth from its silver business remains strong.
The scrip has under performed during the last 3 years and is likely stay muted going forward.
Long term investors should utilize deep cuts to accumulate the stock from current levels and hold for a period of 2 years for a near 100% return.
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