Vedanta Q3 Review - Earnings Outlook Remains Strong: Motilal Oswal Report 

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Motilal Oswal Report

Vedanta Ltd. reported better-than-expected Q3 FY21 results, with Ebitda up 48% YoY to Rs 77.6 billion (our estimate Rs 73.5 billion), the highest in 11 quarters.

With higher commodity prices in the near term, the earnings outlook remains strong.

Given the promoter’s intent to increase the stake and loans given to the parent by the company, we believe the stock price would be driven by corporate actions rather than earnings outlook.

Moreover, high leverage and scheduled debt repayments at the parent Vedanta Resources Ltd. remain an additional overhang for the company.

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