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market | IST

JPMorgan raises target price on Vedanta, NALCO, here’s why

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JPMorgan has upgraded Vedanta to 'overweight' rating from 'neutral,' raising the target price to Rs 400 from Rs 295. Meanwhile, the firm has upgraded National Aluminium Company Limited (NALCO) to 'neutral' from 'underweight', raising the target price to Rs 104 from Rs 46. JPMorgan has maintained its 'overweight' stance on Hindalco, raising the target price to Rs 600 from Rs 540.

JPMorgan has upgraded Vedanta to 'overweight' rating from 'neutral,' raising the target price to Rs 400 from Rs 295.
The firm has upgraded National Aluminium Company Limited (NALCO) to 'neutral' from 'underweight', raising the target price to Rs 104 from Rs 46.
JPMorgan maintained 'overweight' stance on Hindalco, raising the target price to Rs 600 from Rs 540.
The only 'underweight' for the firm is Hindustan Zinc with a target price of Rs 295.
JPMorgan says that among base metals, aluminium is best placed. The firm’s global commodity team expects aluminium to be in deficit in FY21 until FY23 and has sharply increased the price forecast for aluminium by almost 35 percent for CY22 and almost 18 percent for CY23.
This would mean that there will be sharp EPS upgrades for all the aluminium stocks, the likes of Vedanta, Hindalco and NALCO, and there is an upside risk to the earnings as well.
Watch the accompanying video of CNBC-TV18’s Nimesh Shah for more details.
To watch other videos in this series, click on the Standout Brokerage Report tab below.