By Malvika Gurung
Investing.com -- Shares of the mining major Vedanta (NS: VDAN ) traded 3.84% higher at Rs 229.95 apiece at the time of writing, after jumping over 4% as JP Morgan turned enthusiastic on the metal stock.
The global brokerage has pointed that zinc inventories have fallen to multi-decade lows, and when restocking starts and inventory levels climb, Vedanta will be the most suitably positioned to take advantage of the rising LME Zinc prices.
Domestic brokerages have also reaffirmed that zinc inventories at LME warehouses have been consistently going down, hitting multi-decade lows and reflecting a weak demand scenario.
In accordance, JP Morgan has initiated an ‘overweight’ call on the metal stock, setting a target price of Rs 490/share, an upside of 114.95% compared to its current price.
Further, the company is reportedly preparing its biggest-ever rupee bond sale as it plans on using the proceeds to raise funds for repaying or prepaying existing debt for capex, as per sources.
The company’s shares have plummeted 32% so far in 2022.
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