The Vedanta stock rose in trade today after the National Green Tribunal ordered the company-owned Sterlite Copper plant in Tuticorin, Tamil Nadu to be reopened early next month. The Vedanta stock opened with a gain of 6.49% at 214.25 compared to the previous close of 201.20 on the BSE.
Vedanta stock rises over 6% on NGT nod to reopen Sterlite Copper plant in Tuticorin
The stock has been gaining for the last five days and risen 8% during the period.
However, it has lost 36.97% since the beginning of this year and 30.25% during the last one year. 19 of 21 brokerages rate the stock “buy” or ‘outperform’, two “hold”, according to analysts’ recommendations tracked by Reuters.
Morgan Stanley said news is positive for the stock in the near term; restart will add 4 % and 8% upside risk to FY20 EBITDA and earnings estimates, respectively.
13 people were killed in May after demonstrations calling for closure of plant due to alleged pollution turned violent, resulting in shut down of the smelter
The green tribunal overturned an order by the Tamil Nadu government to close the copper smelter over alleged damage to the environment. In this order, the NGT asked the state pollution control board to pass the required authorisations within three weeks.
Buoyed by the NGT order allowing the reopening of its Tuticorin plant, Sterlite Copper CEO P Ramnath on Sunday said the company will now approach the Tamil Nadu government for consent to resume operations at the unit.
The company’s 4,00,000 tonne per annum plant met over 30 per cent of India’s copper demand. It also produced sulphuric and phosphoric acids as a by-product which is key raw material for manufacturing of fertiliser.