May 8, 2019 / 4:37 AM / 2 months ago

BUZZ-India's Vedanta dives; concern over related-party transaction to remain overhang - CLSA

** Shares in Vedanta Ltd drop as much as 4.1 pct to 156.80 rupees, their lowest since Feb. 20 and biggest pct loss in nearly 4 weeks

** Miner’s Q4 net profit dived to 26.15 bln rupees ($375.71 mln), but came in much above expectations, from 48.02 bln rupees a year ago due to a one-time gain of 28.69 bln rupees it saw as reversal of previous impairments

** CLSA cuts PT on stock to 135 rupees from 170 rupees with “sell” rating, saying concern over related-party transaction to remain an overhang, likely to overshadow its underlying earnings outlook and remain a drag on its valuation

** CLSA says slow volume ramp-up in zinc & oil and increased costs in unit Hindustan Zinc Ltd are concerns

** Morgan Stanley says focus remains on volume growth in zinc, aluminium and oil & gas, and better cost management, particularly in the aluminium segment; keeps “equal-weight” rating with PT of 176 rupees

** Stock down 19.1 pct this year as of last close ($1 = 69.6010 Indian rupees)

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