Vedanta shares in focus after winning bid for diamond block in Madhya Pradesh

The company announced that the Madhya Pradesh Department of Geology and Mining had invited tenders for the Kauhari Diamond Block through e-auction for a composite licence. Vedanta participated in the live e-auction and, via a notification dated February 20, 2025, was declared the highest bidder with a final price offer of 1.10%.

According to the tender document, the Kauhari Diamond Block is at the G4 level of exploration, covering a total area of 643.42 hectares. The final grant of the licence is subject to necessary payments and regulatory approvals.

In November, Vedanta group company Hindustan Zinc secured a similar composite licence for a gold mining block in Rajasthan through a state government auction.

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Vedanta reported 76% year-on-year (YoY) in its consolidated net profit for the quarter ended December 31, 2024, to Rs 3547 crore. The profit is attributable to the owners of the company. Revenue from operations increased 10% YoY to Rs 38,526 crore.Consolidated EBITDA during the third quarter rose 30% YoY to Rs 11,284 crore. Margins, meanwhile, improved 517 bps YoY at 34%.Revenue growth during the quarter was driven by favourable market prices and higher premiums. The strong operating performance was mainly due to structural cost-saving initiatives across businesses, favorable output commodity prices, partially offset by input commodity inflation.

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Vedanta shares target price
As per Trendlyne data, the average target price of the stock is Rs 513, which shows an upside potential of 17% from the current market prices. The consensus recommendation from 15 analysts for the stock is a ‘Buy’.

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