Vedanta shares slide 8% after Q3 results. Should you buy, sell, or hold?

We start with the big news: Vedanta shares fell sharply, about 8%,  after the company announced its Q3 results. The stock hit as low as ₹702.40 before retracing some losses. Many investors were surprised because the profit and revenue numbers were strong, yet the market still reacted negatively. This makes one big question very real: Should you buy, sell, or hold Vedanta shares right now?

Q3 Financial Highlights

• PAT surge: Profit After Tax (PAT) rose ~60% YoY to ₹7,807 crore.
• Revenue growth: Revenue from operations climbed 19% YoY to ₹45,899 crore.
• Record EBITDA: EBITDA reached ₹15,171 crore with margins expanding sharply.
• Strong production: Key metals saw solid output, with alumina rising 57% and increases in zinc and copper as well.
• Summary: Vedanta earned more than last year. Revenues and profits are higher, yet the share price fell.

Reasons Behind the Share Drop

• Profit booking: Traders booked profits after recent gains, creating selling pressure.
• Overbought stock: Technical indicators like RSI were high, signaling overbought territory.
• Valuation concerns: Brokers called the stock expensive for the near-term outlook.
• Metal sector weakness: Broader metal stocks fell, pulling Vedanta down.
• Debt worries: Despite profit growth, high debt remains a concern for cautious investors.
• Summary: Strong numbers met, with risk considerations and sector pressures leading to the decline.

Company Fundamentals & Valuation

• Segment strength: Aluminium remains a major profit driver.
• Diversified revenue: The company earns from multiple streams, including metals, oil & gas, and power.
• High net debt: Net debt stands at ₹60,624 crore, showing significant leverage.
• Debt coverage: Credit ratings outlook recently upgraded, easing some concerns.
• Global presence: Vedanta is among the world’s largest zinc and critical metal producers.
• Summary: Company fundamentals stroare ng, but debt is a key risk factor for investors.

Technical & Market Outlook

• Recent trend: The stock has been higher for months, with intense recent buying.
• RSI signals: Above normal, suggesting short-term pullbacks are likely. are are 
• Sector weakness: Metal indices and broader markets were weak on the drop day.
• Summary: Short-term price moves may be choppy; long-term trend remains positive.

Buy, Sell, or Hold?

• Buy: Believe in long-term metals demand, comfortable with volatility, and expect gains from demerger.
• Hold: Already owns Vedanta, see recent dip as profit booking, debt manageable if earnings grow.
• Sell: Low risk tolerance, prefer less leveraged stocks, want profits after recent rally, cautious on metal prices.
• Summary: Decision depends on risk appetite, investment horizon, and comfort with debt.

Conclusion

Vedanta’s Q3 performance delivered solid profits and growth, but the stock still fell about 8% amid mixed investor sentiment. We see a company with solid earnings, balanced by high debt and technical caution. This creates a mix of opportunities and risks. As investors, we must weigh fundamentals, market signals, and personal goals before deciding to buy, sell, or hold Vedanta shares.

For now, this pullback may be a chance to review your stance. But remember, markets can stay irrational longer than expected, so having a clear plan is key.

FAQS

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.