JP Morgan remains upbeat about Vedanta
Not getting distracted; stay long', JP Morgan on Thursday said it remains comfortable with Vedanta's leverage position and government's oversight of Hindustan Zinc, an arm of Vedanta Ltd. 'We have generally focussed on Vedanta Ltd's cash flows and earnings excluding Hindustan Zinc to unravel the key drivers of the credit. VDL (ex-HZL) reported EBITDA of USD 3.1 billion in FY25 and a net leverage of 2.2x. We struggle to see financial stress at VDL with these metrics. For HZL, net leverage was 0.1x. HZL has capex plans and we see net leverage going up to 0.5x,' the note said.
Vedanta is cheap within the Asian and emerging market metals and mining space supported by healthy EBITDA generation, improved funding access with approximately $1 billion bank loans raised by Vedanta Resources in FY26, and attractive yields, it added.
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