Shares of this fundamentally strong large-cap company tumble over 15 per cent; heres why!

Considering the yearly performance, the net profit soared 57.71 per cent to Rs 23,709 crore and company approved the interim dividend of Rs 31.5 per equity share i.e. 3,150 per cent on the face value of Re 1.

On Monday, the shares of the multinational mining company, Vedanta Ltd (VEDL) plunged over 15 per cent to its new 52-week low of Rs 221.70 on BSE as the company posted an advertisement inviting expression of interest (EoI) for its Tuticorin-based smelter. The last day to submit the EoI is July 4, 2022.  

The company, in conjunction with Axis Capital, announced the sale of its copper plant along with copper refinery, phosphoric acid plant, sulphuric acid plant, an oxygen generation unit, and residential complex with amenities. The plant has been shut since the year 2018 after allegations of violating environmental norms and regulations. The plant has gained significance as it produces approximately 40 per cent of India’s demand for copper and contributes around Rs 2,500 crore to the exchequer, providing direct employment to 5,000 people and 25,000 indirectly through the value chain.   

Considering the yearly performance, the net profit of Vedanta Ltd soared 57.71 per cent to Rs 23,709 crore as against Rs 15,033 crore during the previous year ended in March 2021. Also, its net sales surged 50.8 per cent to Rs 1,32,732 crore as against Rs 88,021 crore during the previous year ended March 2021. The company’s board has approved the interim dividend of Rs 31.5 per equity share i.e. 3,150 per cent on the face value of Re 1 per share for the financial year 2022-23, amounting to Rs 11,710 crore.  

Vedanta Ltd is engaged in the exploration, production, and sale of zinc, lead, silver, copper, aluminium, iron ore, oil & gas. It has a presence across India, South Africa, Namibia, Ireland, UAE, and Liberia. Keep a close eye on this scrip for the upcoming sessions.