Questor share tip: Vedanta's roller coaster ride could be poised for a climb The disappointing performance was blamed for a more than 6pc fall in Vedanta's shares. The group, controlled by billionaire Anil Agarwal, is feeling the impact of a ban on iron ore mining in the Indian state of Karnataka. Mining has been halted since August by the Indian courts over possible environmental breaches by companies including Sesa Goa, which is a Vedanta unit. In addition, iron ore production has also been disrupted by transport "bottlenecks" in Goa, Vedanta said, underlining just how much the industry depends on getting the logistics right. Management said it was expanding existing highways and establishing road corridors to tackle this problem. Copper was also looking a little weak, with production of the metal at company's Zambian operations down 8pc because of a lack of concentrate supply. Vedanta's full-year financial results follow on May 17, and the consensus from analysts is that pre-tax profits will have dipped to $2.3bn (£1.4bn) from $2.8bn, despite a rise in revenues from $11.4bn to $13.9bn. However, Questor sees reasons to feel positive about Vedanta. The shares were first recommended on December 4, 2008, at 543p and have had a roller coaster ride since then, reaching 2010 highs above the £25-a-share mark. A particular headache for management has been the negative headlines Vedanta has faced over a proposed bauxite mine on holy lands in the Indian state of Orissa. The Indian authorities rejected the plans and that saga is still to be resolved, with a key hearing having being postponed on Monday and now expected to take place in late May or early June. If it goes Vedanta's way, the share price could enjoy a significant boost. Also on the plus side, in December Vedanta finally completed its long-delayed $8.7bn purchase of a majority stake in Cairn Energy's Indian unit, more than a year after the deal was first announced. The acquisition turned Vedanta into a diversified resources group and should boost its performance. Supporting that view, Tuesday's figures showed that production in oil and gas, the division bought from Cairn, came in slightly ahead of forecasts. In addition, it recently emerged that Vedanta plans to join together two of its separately listed Indian subsidiaries in a deal designed to simplify its corporate structure and save millions. This move to reduce the company's complexity should be welcomed by investors, as it is an issue which has been weighing on the share price. Vedanta's shares are trading on a current-year earnings multiple of 5.1 and yielding around 3pc. Questor does not advise a buying spree - but nor does it think now is the time to sell, particularly with the mining sector currently under something of a cloud because of worries about Chinese growth. Hold.