Stock recommendation for holding - stock market trends 2022

 Stock recommendation for 1 year investment horizon recommended by stock market trends

Vedanta Ltd

Vedanta Limited is India's largest natural resource company with  a portfolio of large, world-class , low cost, scalable assets operating in high- growth markets. The company is a leading player in the Zinc, oil and gas , iron ore , lead, silver, steel , copper, Aluminium and commercial energy segments. Its operations are primarily based in India, South Africa , Ireland and Australia. The company reported net sales of Rs.88,021 crores in FY2021 as compared to Rs.84,447 crore in FY2020.

The company's balance-sheet has a strong liquidity position as the cash flows from operating activities increased from Rs.19,300 crore in FY2020 to Rs.23,980 crore in FY2021 by 24.24%. The robust performance was driven by favourable sales realisations on the back of high prices with zinc and aluminium being at historical highs and also due to high brent prices. PAT was reported at Rs.5,354 crore , up by 26.75% YoY. The PAT margin stood at 15.6 % in Q3FY22, contracting from 18.58 % in Q3FY21.

In India , it has about 80% market share in the zinc market with its subsidiary Hindustan Zinc Ltd. Also ,it is the world's largest fully integrated zinc-lead producer . In aluminium , it has about 47% market share, being the largest producer in the nation.

By reviewing all these factors it is considered as a BUY for investment.

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