By Malvika Gurung
Investing.com -- After nosediving up to 16% on Monday and hitting a fresh 52-week low, shares of the mining major Vedanta (NS: VDAN ) surged 3.1% to Rs 237.6 apiece at 2:29 pm on Tuesday.
Despite having plunged 12% in the previous session, global brokerage JP Morgan expects the Anil Agarwal-led stock to rally a whopping 110% from its current price.
The brokerage continues to maintain an overweight rating on Vedanta despite the stock’s recent steep downfall.
The mining major invited bids for selling its copper smelting plant in Thoothukudi, Tamil Nadu (NS: TNNP ), which shut in May 2018 following a state government order after protests held by activists and the public led to a police firing on protestors, killing 13 people.
While operational, the Sterlite Copper plant accounted for 40% of India’s copper output, employing over 5,000 individuals and indirectly 25,000 people. It contributed to 12% of Thoothukudi port’s revenue and 95% market share of sulphuric acid in Tamil Nadu.
While the market indulged in a heavy sell-off after the announcement on Monday, JP Morgan views the copper smelter sale as a positive development for Vedanta, as the prices of LME aluminium are back to Q1FY22 levels, good news for the company.
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