The broker highlighted Vedanta's favorable positioning to benefit from the commodity upcycle due to its diversified exposure. The company is actively enhancing capacity and profitability across different segments. Vedanta has signaled a growth trajectory, with the group's EBITDA anticipated to increase from $5 billion to $6-$7.5 billion by FY25/27. While the parent company has shown a notable reduction in debt, Vedanta's leverage has increased, the broker assessed.

Vedanta, a subsidiary of Vedanta Resources, is one of the world's leading oil & gas and metals company with significant operations in oil & gas, zinc, lead, silver, copper, iron ore, steel, and aluminium & power across India, South Africa and Namibia.

On consolidated basis, the diversified metal company reported 18.3% decline in net profit to Rs 2,013 crore in Q3 FY24 as against Rs 2,464 crore in Q3 FY23. The miner reported highest ever third quarter revenue of Rs 34,968 crore, registering a growth of 4% YoY, driven by higher sales volume, premia and favorable movement in exchange rate which was partially offset by decrease in commodity prices.