Vedanta Limited (VEDL) shares are trading at lower $5.96.
To add more color to this target, the company’s high over the last year is $9.41 and the low is $3.24. Over the last 52 weeks, VEDL is down -27.58% while the S&P 500 is up 18.28%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, VEDL reported a profit of $1.33 billion. Vedanta Limited also saw revenues increase to $2.24 billion. In addition, VEDL has free cash flow of $0.0 as of 06-2020. The company’s EBITDA came in at $982.34 million which compares well with its peers.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. VEDL has a short ratio of 4.26 and outstanding shares of 929.30M.
VEDL has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.35 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 1.22. Investors should also keep an eye on sector updates as VEDL has historically followed its peers on positive news.
All told, Vedanta Limited VEDL has strung together solid data and demonstrated underlying fundamentals. At its current valuation, VEDL represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Vedanta Limited VEDL is now commanding a market cap of 5.54B and a float of 424.97M. VEDL is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of VEDL stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in VEDL, either long or short, and we have not been compensated for this article.