Vedanta share price: Is this a stock to buy amid Donald Trump’s tariffs flair?

Stock to buy: Vedanta share price witnessed strong selling pressure on Friday despite reporting a promising Q4FY25 production. Following the Indian stock market crash on Friday after Donald Trump's tariffs shock, Vedanta's share price closed at ₹402.50 apiece, recording an 8.50% dip against Thursday's close of ₹439.50 apiece on the NSE.

On Thursday, after the market close, Vedanta reported achieving historic highs in aluminium and zinc production while witnessing robust growth in iron ore, steel, oil and gas, and power sales. Annual aluminium production reached 2,421 kt, reflecting a 2 per cent year-on-year increase, with fourth-quarter output rising 1 per cent. Alumina production also saw a 9 per cent annual growth, supported by expansion projects, though temporary supply chain disruptions affected quarterly production before stabilizing towards the end of the period.

According to stock market experts, Vedanta's fundamentals are sound, but Donald Trump's reciprocal tariffs are expected to weigh on metal stocks soon. That's why Vedanta's share price is under pressure despite delivering a substantial production update for the fourth quarter of the financial year 2024-25. They said Vedanta shareholders should hold the scrip, maintaining a strict stop loss at ₹350, whereas fresh investors can wait until Trump's tariff is discounted on Dalal Street.

Vedanta news

Pointing towards Vedanta's Q4 production update for FY25, Astha Jain, Senior Research Analyst at Hem Securities, said, "Vedanta has posted record annual Aluminium production at 2,421 kt which is 2% growth on YoY basis while Zinc India records a new high for annual Mined Metal production of 1,095 kt and refined metal production of 1,052 kt, a 2% rise on YoY basis. Company's quarterly zinc international production rise 52% YoY & 9% QoQ & 4Q Iron Ore saleable production jumps 22% YoY and 36% QoQ."

Hem Securities expert said Vedanta received approval from its shareholders and creditors last month for its proposal to demerge the company into five independent, sector-specific companies.

Trump's tariffs weigh

"Vedanta share price plummeted on Friday due to the higher-than-expected reciprocal tariffs by the US President Donald Trump, which led to concerns related to global economic growth," said Astha Jain of Hem Securities.

Vedanta share price outlook

Advising fresh investors to wait for some sessions, Shiju Koothupalakkal, Senior Manager — Technical Research at Prabhudas Lilladher, said, “Vedanta share price has tanked heavily in the last two sessions to move below the important 200 period MA at ₹454 and also the 50-EMA at ₹444 zone to weaken the bias anticipating for further slide. The crucial support would be positioned near ₹390, the previous major low. A decisive breach below this level shall trigger a further weakening of the trend thereafter, expecting intensified profit booking in the coming days. From the current level, for the bias to improve, at least it would need to cross above ₹424 and anticipate a further upward move.”

Vedanta shares may try to test ₹360 levels once they break below ₹385 on a closing basis. Hence, we recommend not entering into fresh long positions at current levels. Those who already own this stock can continue to hold with a stop loss placed at ₹350. However, Vedanta share is facing major resistance at ₹440," said Astha Jain of Hem Securities.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.