Vedanta Ltd’s fundamental analysis highlights key financial metrics including market capitalization of ₹161,324.7 crore, PE ratio of 38.06, debt-to-equity ratio of 208.48, and return on equity of 9.27%. These figures reflect the company’s financial health and current market valuation.
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Vedanta Ltd Overview
Vedanta Ltd is a diversified natural resources company with operations across multiple sectors. It operates in various industries including oil and gas, zinc, lead, silver, copper, iron ore, steel, nickel, aluminum, power, and glass substrate.
The company has a market capitalization of ₹161,324.7 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 22.63% below its 52-week high and 98.68% above its 52-week low.
Vedanta Financial Results
Vedanta Ltd has experienced fluctuating financial performance from FY 22 to FY 24, with sales reaching ₹1,43,727 crore in FY 24 after a peak in FY 23. Despite stable operational growth, net profit declined sharply due to a substantial increase in tax rates to 63%.
1. Revenue Trend: Sales increased from ₹1,32,732 crore in FY 22 to ₹1,47,308 crore in FY 23 but slightly decreased to ₹1,43,727 crore in FY 24, showing a fluctuation in revenue over the period.
2. Equity and Liabilities: Equity and Liabilities for FY 24 show a slight decrease, with total liabilities at ₹1,90,807 crore compared to ₹1,96,356 crore in FY 23, reflecting a reduction in current liabilities.
3. Profitability: The Operating Profit Margin (OPM) declined from 34% in FY 22 to 24% in FY 24. Net profit also fell from ₹23,710 crore in FY 22 to ₹7,539 crore in FY 24, largely due to a significant tax increase.
4. Earnings per Share (EPS): EPS has decreased dramatically from ₹50.73 in FY 22 to ₹11.42 in FY 24, reflecting decreased profitability per share.
5. Return on Net Worth (RoNW): Not specified, but the decrease in net profit suggests a lower return on shareholders’ equity.
6. Financial Position: The high dividend payout rate of 258.32% in FY 24 suggests an aggressive distribution policy despite the financial downturn.
Vedanta Ltd Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 1,43,727 | 1,47,308 | 1,32,732 |
| Expenses | 1,08,529 | 1,12,886 | 87,908 |
| Operating Profit | 35,198 | 34,422 | 44,824 |
| OPM % | 24 | 23 | 34 |
| Other Income | 5,353 | 2,634 | 1,832 |
| EBITDA | 37,748 | 37,273 | 47,424 |
| Interest | 9,465 | 6,225 | 4,797 |
| Depreciation | 10,723 | 10,555 | 8,895 |
| Profit Before Tax | 20,363 | 20,276 | 32,964 |
| Tax % | 63 | 28 | 28 |
| Net Profit | 7,539 | 14,503 | 23,710 |
| EPS | 11.42 | 28.5 | 50.73 |
| Dividend Payout % | 258.32 | 356.14 | 88.7 |
* Consolidated Figures in Rs. Crores
Vedanta Ltd Company Metrics
Vedanta’s market cap is ₹161,324.7 crore with a book value of ₹82.6 per share. The face value per share is ₹1. Total debt is ₹87,706 crore, ROE is 9.27%, and quarterly EBITDA is ₹9,151 crore. The dividend yield stands at 6.8%.
Market Capitalization:
Market Capitalization represents the total market value of Vedanta’s outstanding shares, amounting to ₹161,324.7 crore.
Book Value:
The book value per share of Vedanta Ltd is ₹82.6 indicating the value of the company’s net assets divided by its shares outstanding.
Face Value:
The face value of Vedanta’s shares is ₹1, which is the nominal value of each share as stated on the share certificate.
Asset Turnover Ratio:
The Asset Turnover Ratio of 0.79 measures how efficiently Vedanta uses its assets to generate sales revenue or sales income.
Total Debt:
The Total Debt of Vedanta stands at ₹87,706 crore, representing the total amount of money the company owes to creditors.
Return on Equity (ROE):
The ROE of 9.27% measures Vedanta’s profitability by revealing how much profit the company generates with the money shareholders have invested.
EBITDA (Q):
The quarterly EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Vedanta is ₹9,151 crore, indicating the company’s operating performance.
Dividend Yield:
The dividend yield of 6.8% shows the annual dividend payment as a percentage of Vedanta’s current share price, indicating the return on investment from dividends alone.
Vedanta Ltd Stock Performance
Vedanta Ltd provided an impressive one-year return of 80%, a modest three-year return of 9.28%, and a strong five-year return of 24%. This showcases the company’s fluctuating but significant long-term growth potential.
| Period | Return on Investment (%) |
| 1 Year | 80.0 |
| 3 Years | 9.28 |
| 5 Years | 24.0 |
Example: If an investor had invested ₹1,000 in Vedanta’s stock:
1 year ago: An investment of ₹1,000 would now be worth ₹1,800.
3 years ago: That investment would have grown to approximately ₹1,092.80.
5 years ago: The initial ₹1,000 would have increased to around ₹1,240.
Vedanta Ltd Peer Comparison
Vedanta Ltd, with a market capitalization of ₹1,69,652 crore and a P/E ratio of 38.06, offers a one-year return of 80% and a dividend yield of 6.88%. This positions it among strong peers like Coal India and NMDC, which offer higher returns and dividend yields, highlighting its competitive stance in the mining sector.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % |
| Coal India | 524 | 3,23,112 | 9 | 52 | 59 | 126 | 64 | 4.88 |
| Vedanta | 434 | 1,69,652 | 38 | 10 | 14 | 80 | 21 | 6.88 |
| NMDC | 228 | 66,935 | 12 | 24 | 19 | 95 | 31.92 | 2.56 |
| Lloyds Metals | 763 | 39,897 | 28 | 57 | 28 | 21.79 | 78.27 | 0.13 |
| KIOCL | 424 | 25,757 | -4 | -1 | 92 | -2 | – | |
| G M D C | 371 | 11,809 | 20 | 10 | 18 | 108 | 13.78 | 3.08 |
| MOIL | 434 | 8,832 | 25 | 12 | 18 | 101 | 16.48 | 0.81 |
Vedanta Shareholding Pattern
Vedanta Ltd has seen a reduction in promoter shareholding from 64% in December 2023 to 59.32% in June 2024, while foreign institutional investors (FII) holdings increased from 7.74% to 10.23%. Domestic institutional investors (DII) and retail holdings also showed variable changes during the same period.
| All values in % | Jun-24 | Mar-24 | Dec-23 |
| Promoters Insight-icon | 59.32 | 61.95 | 64 |
| FII | 10.23 | 8.77 | 7.74 |
| DII | 14.78 | 13.15 | 11.19 |
| Retail & others | 15.66 | 16.11 | 17.36 |
Vedanta Limited History
Vedanta Limited is a diversified natural resources company with a broad portfolio of operations. The company’s activities span across various sectors including oil and gas, zinc, lead, silver, copper, iron ore, steel, nickel, aluminum, power, and glass substrate, making it a significant player in the global resources industry.
In the metals segment, Vedanta produces a range of products catering to diverse industries. Its aluminum division manufactures ingots, primary foundry alloys, wire rods, billets, and rolled products, serving sectors such as power, transportation, construction, packaging, renewable energy, automobile, and aerospace. The company’s iron ore and pig iron production caters to the steelmaking, construction, and infrastructure sectors.
Vedanta’s copper division produces various copper products including copper rods, cathodes, and car bars, primarily serving the electrical and electronics industries. In the oil and gas sector, the company sells crude oil to public and private refineries, while its natural gas is consumed by the fertilizer industry and city gas distribution sector in India. This diverse portfolio allows Vedanta to maintain a strong presence across multiple industrial sectors.
How To Invest In Vedanta Limited Share?
To invest in Vedanta Limited shares, begin by opening a demat account with Alice Blue. Complete the necessary KYC process and fund your account with the desired investment amount.
Research the company’s fundamentals, financial performance, and market trends before making an investment decision. Use the trading platform provided by the broker to place a buy order for Vedanta shares at your preferred price.
Monitor your investment regularly and stay informed about company news and market developments. Consider setting up a systematic investment plan (SIP) for long-term investing in the stock if it aligns with your financial goals.
Vedanta Limited Fundamental Analysis – FAQs
Fundamental analysis of Vedanta Ltd examines key financial metrics: Market Cap (₹161,324.7 crore), PE Ratio (38.06), Debt to Equity (208.48), and Return on Equity (9.27%). These indicators provide insights into the company’s financial health, market valuation, and overall performance in the natural resources sector.
The market capitalization of Vedanta Ltd is ₹161,324.7 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.
Vedanta Limited is a diversified natural resources company based in India. It operates in various sectors including oil and gas, zinc, lead, silver, copper, iron ore, steel, nickel, aluminum, power, and glass substrate. The company produces a wide range of products catering to multiple industries.
Vedanta Limited is a public company, with Vedanta Resources Limited, founded by Anil Agarwal, as its parent company. While the Agarwal family holds a significant stake through various entities, Vedanta Limited is a listed company with multiple shareholders including institutional investors and public shareholders.
Determining if Vedanta is a good long-term buy depends on various factors including the company’s financial health, growth prospects, commodity price trends, and individual investment goals. Investors should conduct thorough research and consider consulting a financial advisor before making long-term investment decisions.
The main shareholders of Vedanta Ltd typically include Vedanta Resources Limited (the parent company) as the major stakeholder, along with institutional investors (both domestic and foreign), mutual funds, and public shareholders. For the most current shareholding information, refer to the latest pattern disclosed by the company.
Vedanta operates in the natural resources industry, specifically in the mining and metals sector. The company is involved in the exploration, extraction, and processing of various minerals and metals, as well as oil and gas production. It plays a significant role in the global commodities market.
To invest in Vedanta shares, open a demat account with Alice Blue, complete KYC, fund your account, research the company, and use the trading platform to place a buy order for the desired number of shares at your preferred price.
