Is it the right time to invest in Vedanta 2020 ? Its dividend yield is 25%.
Vedanta is a MNC, I would say Indian MNC run by Good Management. The Chairman Mr.Anil Agarwal is a seasoned businessman with hands on experience with reality.
Coming to the nature of business, it deals with Metal & OIL. Both are cyclical in nature and at the same time we have to understand without, the metals and oil, the world cannot build any infrastructure.
Take India vs Singapore or India vs US or just take India vs China, we are lagging behind minimum 20 to 50years, in terms of their roads, bridges and high raise building.
To build that we need huge natural resources of metal and oils in different forms.
So, the above fact clearly proves that there is huge demand for metal & oil for INDIA.
On the other side, considering the nature of metals and oils it has touched the bottom of the cycle. So in coming days, the downside risk is very low. But on the upside it can easily double in 2 to 3 years time.
Another attractive portion is the dividend declared by this Vedanta. No one can match this company on this. Some may argue that dividend amount will fall once it is declared, but the value of the company doesn’t change much. Yes, the price will fluctuate a bit.
See the technicals given below, the price was around Rs60 in 2016 and after 4 years touched the same level now.
In terms of Fundamental analysis also, this company score fairly well, compared to their peers.
As per the analysis and understanding , this is the best time to accumulate this with the Long term mind set.
on 31 Mar 2020, Vedanta is trading around Rs65…will see where it goes in next 6 months..
on 13 Apr 2020, at Rs.78 ( about 20% up already )
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