ICICIdirect has maintained 'Hold' on Vedanta following announcement of company's first quarter results. The stock broker fixed price target to Rs 135.

Commenting on the results, ICICIdirect said, ''Vedanta reported a mixed set of Q1FY16 numbers. The EBITDA came in below our estimates while on the back of forex gain, PAT came in higher than our estimates. The key disappointment came in from the aluminium segment on the back of a steep fall in aluminium realisations and premium. While the EBITDA of Vedanta Aluminium (VAL) declined 66% QoQ and 60% YoY to Rs 1.78 billion, Balco reported an EBITDA loss of Rs 1.69 billion.''

Commenting on the investment rationale, ICICIdirect said, ''For the quarter, Vedanta reported a muted performance on account of the subdued performance from the aluminium business. However, we were positively surprised by the zinc international and copper business. The aluminium business performance was disappointing on the back of muted prices and subdued premium. On the brighter side, the decline in CoP of zinc international from USD 1,505/tonne in Q4FY15 to USD 1,409/tonne in Q1FY16 augurs well for the company.

The copper business also reported a stable performance wherein the smelter operated at high capacity utilisation and TCRC and acid realisations remained strong leading to net CoP of 2.5 cents/lb (down 72% YoY and 24% QoQ).We have a positive view on the company’s domestic zinc business (HZL) on account of strong underlying fundamentals. However, we have a cautious view on the company due to the huge debt pile and a skewed EBITDA profile. We value the company using SOTP valuation and arrive at a target price of Rs 135. We have a Hold recommendation on the stock.''

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