During Monday’s trading session, Vedanta’s share price declined by over one percent, mirroring the broader weakness observed across the Indian stock market. This downturn comes amid persistent challenges, primarily driven by sustained selling pressure from foreign institutional investors (FIIs). Adding to the market’s instability are growing global uncertainties, particularly those related to the Trump tariffs, which have heightened investor concerns on an international scale.
Market analysts suggest that the prevailing trend of ‘Sell India, Buy China’ could continue in the near future, as Chinese stocks currently present a more attractive investment opportunity for global investors. This shift in sentiment has contributed to the subdued performance of Indian equities, including Vedanta’s shares.
Despite the market headwinds, Vedanta recently made a significant announcement that could impact its long-term growth prospects. On Friday, the company revealed that it has been selected as the preferred bidder for a diamond mining project in Madhya Pradesh. Vedanta’s winning bid, offering a 1.10 percent share, was the highest among competing bids for the Kauhari Diamond Block. This development highlights the company’s strategic efforts to diversify its resource portfolio and strengthen its position in India’s mining sector.
While the market continues to face pressure from global factors and shifts in investor sentiment, Vedanta’s latest achievement signals potential growth opportunities in the mining industry moving forward.
The Kauhari Diamond Block in Madhya Pradesh, for which Vedanta has emerged as the preferred bidder, is currently at the G4 exploration stage. This phase, known as the reconnaissance stage, represents the earliest level of exploration in mining activities. The primary objective at this stage is to identify potential mineral deposits over a large area. It involves broad-scale assessments such as systematic geological mapping and airborne geophysical surveys, which help determine whether the site holds promising mineral resources worth further investigation.
The designated mining block covers a substantial area of 643.4169 hectares. While Vedanta’s bid has positioned the company as the leading contender for the mining rights, several procedural steps remain before the license can be officially granted.
The issuance of a composite license by the Government of Madhya Pradesh will be contingent upon fulfilling several requirements. These include the submission of a performance bank guarantee to ensure compliance with the terms of the contract and adherence to the conditions specified in the official tender document. In addition, the company must obtain necessary approvals from various government regulatory bodies and finalize all legal agreements relevant to the mining operation.
The auction process for the composite license was initiated by the Madhya Pradesh government through a formal tender, inviting bids from interested companies to participate in the allocation of mining rights for the diamond block. Vedanta actively participated in this bidding process, and by offering the highest bid, has positioned itself favorably for acquiring the license, pending the completion of all necessary formalities and government approvals.
Vedanta Shares: Technical Analysis Overview
According to Riyank Arora, a Technical Analyst at Mehta Equities Ltd, the share price of Vedanta is currently exhibiting a bullish formation on the technical charts. This indicates a positive price trend, suggesting potential upward momentum in the near term.
Arora pointed out that the stock is facing a key resistance level around the ₹440 mark. If the price successfully breaks through this level, the next significant resistance is expected to emerge near the ₹450 range. These resistance levels are critical indicators for traders, as surpassing them could signal further upward movement.
At the same time, Arora emphasized the importance of risk management for investors holding long positions. He recommended placing a strict stop-loss at ₹425, which would help limit potential losses if the stock price reverses direction unexpectedly. Despite short-term fluctuations, the overall sentiment surrounding metal stocks remains positive, reinforcing the optimistic outlook for Vedanta’s share performance based on current technical indicators.
Vedanta Q3 Financial Results: Strong Profit Growth Driven by Revenue Surge
Vedanta Ltd has reported a significant 76.2% increase in its consolidated net profit for the quarter ending December 31, 2024. The company’s net profit surged to ₹3,547 crore, a substantial rise from the ₹2,013 crore recorded during the same quarter in the previous financial year, according to a regulatory filing with the Bombay Stock Exchange (BSE). This notable growth in profitability is primarily attributed to a boost in revenue.
In terms of overall income, Vedanta witnessed a 9.5% increase in its consolidated income, which climbed to ₹39,795 crore compared to ₹36,320 crore reported during the corresponding quarter of the previous fiscal year. This upward trajectory underscores the company’s strong performance across its business segments.
Additionally, Vedanta’s consolidated revenue for the third quarter stood at ₹38,526 crore, reflecting a 4% increase on a quarter-on-quarter basis and a 10% rise year-on-year. The growth in revenue was largely driven by favorable market conditions, including higher commodity prices and increased premiums on their products.
These positive financial results highlight Vedanta’s ability to leverage market opportunities effectively while maintaining strong operational performance, contributing to its robust earnings growth during the third quarter.