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Vedanta: Capital Allocation Overhang Clouds Yet Another Strong Quarter

Aug. 04, 2021 4:40 AM ETVedanta Limited (VEDL)4 Comments


  • Vedanta Ltd. posted another robust set of quarterly results, benefiting from the continued commodity pricing strength.
  • Planned capacity expansion is a step in the right direction as well and should boost earnings growth.
  • While a dividend hike is on the cards, the outsized debt load at parentco Vedanta Resources means capital allocation risks remain.
Forklift handling pack of aluminum ingot in warehouse. Distribution warehouse and industrial raw material logistics.
Kosal Hor/iStock via Getty Images

Vedanta Ltd. (NYSE:VEDL), a leading diversified resource player globally, recently delivered another solid quarter, benefiting from the continued commodity pricing strength. And with spot prices higher than FQ1 ’22 on average, FQ2 ‘22 is shaping up to be another strong quarter as well. On the back

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