ICICI Securities Cuts Vedanta Target Price Amid Rising Commodity Prices

Vedanta's Zinc India business remains a key growth driver for the conglomerate, according to ICICI Securities. The brokerage firm has cut its target price for Vedanta from Rs 369 to Rs 345 due to increased commodity prices lifting EBITDA.

The company reported a 99% year-on-year rise in EBITDA to Rs 8,500 crore, driven by rising base metal prices and lower cost of production. ICICI Securities expects zinc's demand-supply dynamics to be balanced, while silver prices are forecasted to remain high for longer.

Vedanta relies heavily on dividends from Zinc India to meet debt obligations at the standalone level. The company's net debt stands at Rs 8,200 crore, including Rs 5,600 crore cash held by Zinc India.