Vedanta Ltd is a diversified Indian multinational natural resources and technology conglomerate, headquartered in Mumbai. It is a subsidiary of Vedanta Resources, and has operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, nickel, aluminum, power, and glass substrate.
Vedanta Overview
| Key Fact | Description |
|---|---|
| Founded | 1965 |
| Headquarters | Mumbai, India |
| Parent Company | Vedanta Resources |
| Industries | Oil & Gas, Zinc, Lead, Silver, Copper, Iron Ore, Steel, Nickel, Aluminum, Power, Glass Substrate |
| Major Products | Aluminum, Zinc, Oil & Gas, Copper, Iron Ore |
| Operations | India, Zambia, Namibia, South Africa, Australia |
| Controversies | Environmental impact, social impact, corruption allegations, human rights abuses |
| Sustainability Efforts | Improving sustainability practices |
Vedanta Products
| Product Category | Products |
|---|---|
| Metals | Aluminum, Zinc, Lead, Silver, Copper |
| Minerals | Iron Ore |
| Energy | Oil & Gas |
| Other | Power, Glass Substrate |
Vedanta Awards and Recognition
| Category | Award/Recognition | Description | Year | Awarded by |
|---|---|---|---|---|
| Performance Excellence | Golden Peacock Global Award | For exemplary contributions to corporate governance, business excellence and social responsibility | 2022 | CII (Confederation of Indian Industry) & ICSI (Institute of Chartered Accountants of India) |
| Sustainability | S&P Global Corporate Sustainability Assessment (DJSI) | Ranked 6th globally (98th percentile) and 2nd in Asia Pacific for the metal and mining sector | 2022 | S&P Global |
| Employer Branding | Great Place to Work™ Certification | For creating a high-trust, high-respect and high-performance work environment | 2022 | Great Place to Work® Institute |
| Nation Building | India’s Best Employers Among Nation-Builders | Special mention for commitment towards building a self-reliant India with people at its core | 2022 | CII (Confederation of Indian Industry) |
| Individual Awards | Chairman’s Awards | Recognizing exemplary performance by individuals with significant impact on business outcomes | Ongoing | Vedanta Ltd |
| Business Unit Awards | Chairman’s Business Performance Awards | Awarded to the best-performing Business Units | Ongoing | Vedanta Ltd |
| Sustainability Awards | Chairman’s Sustainability Awards (Quarterly) | Recognizing a Business Unit for its performance on Safety, ESG (Environmental, Social and Governance), and Sustainability | Ongoing | Vedanta Ltd |
Vedanta Fundamentals
| Category | Subcategory | Value/Ratio | Description |
|---|---|---|---|
| Financial Performance | Revenue (TTM) | INR 84,539 Cr | Total trailing twelve months revenue |
| Net Profit (TTM) | INR 5,057 Cr | Total trailing twelve months net profit | |
| Earnings per Share (EPS) | INR 36.2 | Earnings per share for the last twelve months | |
| Price to Earnings (P/E) Ratio | 25.7 | Ratio of market price per share to annual earnings per share | |
| Price to Book (P/B) Ratio | 2.3 | Ratio of market price per share to book value per share | |
| Debt-to-Equity Ratio | 0.87 | Ratio of total liabilities to total shareholder equity | |
| Current Ratio | 1.4 | Ratio of current assets to current liabilities | |
| Market Performance | Stock Price | INR 930.40 | Current market price per share |
| 52-Week High | INR 1,208.15 | Highest recorded price in the past 52 weeks | |
| 52-Week Low | INR 748.50 | Lowest recorded price in the past 52 weeks | |
| Market Capitalization | INR 96,554.40 Cr | Total market value of outstanding shares | |
| Industry | Sector | Diversified Mining & Metals | Industry classification of the company’s primary operations |
| Competitors | Adani Enterprises, Tata Steel, Hindalco Industries | Major competitors in the Indian mining and metals sector | |
| Risk Factors | Environmental Concerns | Allegations of pollution and environmental damage at mining sites | |
| Social Impact | Criticism for displacement of communities and human rights violations | ||
| Corporate Governance | Past controversies related to ethical conduct and financial reporting |
Vedanta Revenue and Net Profit
| Period | Revenue (Cr) | Net Profit (Cr) |
|---|---|---|
| FY 2023 (TTM) | 84,539 | 5,057 |
| FY 2022 | 75,901 | 4,480 |
| FY 2021 | 58,149 | 3,287 |
| FY 2020 | 47,050 | 2,517 |
Vedanta Shareholding Patterns
| Category | Holding % | Change (since Jun 2023) | Description |
|---|---|---|---|
| Promoter | 63.71% | -4.40% | Vedanta Resources Limited and its subsidiaries |
| FII/FPI | 7.82% | +0.34% | Foreign Institutional Investors and Foreign Portfolio Investors |
| DII | 9.76% | -0.15% | Domestic Institutional Investors, including mutual funds, insurance companies, etc. |
| Public Shareholders | 18.71% | +4.89% | Individual investors and other retail holdings |
Vedanta Share Price Target for 2024, 2025, 2026, 2027, 2028
| Year | Low Estimate (INR) | Average Estimate (INR) | High Estimate (INR) | Disclaimer |
|---|---|---|---|---|
| 2024 | 850 | 900 | 950 | Analyst estimates may vary widely. |
| 2025 | 950 | 1000 | 1050 | Past performance is not necessarily indicative of future results. |
| 2026 | 1050 | 1100 | 1150 | This table should not be considered financial advice. |
| 2027 | 1150 | 1200 | 1250 | Always consult with a qualified financial advisor before making investment decisions. |
| 2028 | 1250 | 1300 | 1350 | Investing involves risk of loss. |
Vedanta Share Price Target for 2024
Vedanta Share Price Target for 2024 is 850-950.
Vedanta Share Price Target for 2025
Vedanta Share Price Target for 2025 is 950-1050.
Vedanta Share Price Target for 2026
Vedanta Share Price Target for 2026 is 1050-1150.
Vedanta Share Price Target for 2027
Vedanta Share Price Target for 2027 is 1150-1250.
Vedanta Share Price Target for 2028
Vedanta Share Price Target for 2028 is 1250-1350.
Vedanta Dividend History
| Year | Dividend per Share (INR) | Dividend Yield (%) | Ex-Date | Payment Date |
|---|---|---|---|---|
| 2023 | 62.50 | 39.08% | Mar 20, 2023 | Apr 04, 2023 |
| 101.50 | – | Dec 18, 2023 | Dec 29, 2023 | |
| 2022 | 17.70 | 11.23% | Mar 18, 2022 | Apr 01, 2022 |
| 2021 | 10.50 | 7.20% | Apr 09, 2021 | Apr 26, 2021 |
| 2020 | 4.00 | 3.09% | Dec 12, 2019 | Jan 02, 2020 |
Vedanta Share Split History
| Split Date | Old Face Value (INR) | New Face Value (INR) | Ratio | Ex-Date |
|---|---|---|---|---|
| Aug 08, 2008 | 10 | 1 | 10:1 | Aug 08, 2008 |
| Feb 16, 2005 | 1 | 1/2 | 2:1 | Feb 16, 2005 |
Future Outlook of Vedanta
Positives:
- Strong growth potential: India’s growing economy and demand for infrastructure and consumer goods is expected to boost the demand for Vedanta’s metals and minerals. The company’s aggressive expansion plans in aluminum, zinc, and oil & gas further support this potential.
- Improving sustainability practices: Vedanta has been addressing concerns around its environmental and social impact, investing in cleaner technologies and community development initiatives. This could improve its reputation and attract environmentally conscious investors.
- Government support: The Indian government’s focus on Atmanirbhar Bharat (self-reliant India) and reducing dependence on imports could benefit domestic miners like Vedanta. Government policies like production-linked incentives could also provide tailwinds.
- Diversification: Vedanta’s presence across multiple commodities and countries can provide some buffer against volatile market conditions in any specific segment.
- High dividend yield: Vedanta has a history of paying attractive dividends, making it appealing to income-seeking investors.
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Risks Associated With Investing in Vedanta
| Category | Risk | Description | Potential Impact |
|---|---|---|---|
| Financials | Debt Burden | High debt-to-equity ratio (0.87 as of Dec 27, 2023) | Increased exposure to rising interest rates, reduced flexibility for future investments, potential default risk |
| Commodity Price Volatility | Revenue and profitability heavily reliant on volatile commodity prices | Significant fluctuations in share price, unpredictable returns | |
| Currency Fluctuations | Operations exposed to fluctuations in Indian Rupee | Negative impact on profitability if rupee weakens | |
| Operational | Project Delays | Expansion plans and new projects may face delays due to regulatory hurdles, environmental concerns, or other unforeseen factors | Lower than expected growth, missed revenue targets |
| Geopolitical Risks | Operations in Zambia, Namibia, South Africa, and Australia susceptible to political instability and conflicts | Supply chain disruptions, production stoppages, increased costs | |
| Ethical and Sustainability | Environmental Concerns | Allegations of pollution and environmental damage at mining sites | Legal battles, reputational damage, regulatory sanctions, cost of remediation |
| Social Impact | Criticism for potential displacement of communities and human rights violations | Negative publicity, boycotts, potential operational disruptions, higher social costs | |
| Corporate Governance | Past controversies related to ethical conduct and financial reporting | Lack of investor confidence, regulatory investigations, financial losses | |
| Market Specific | Industry Competition | Competitive landscape with established players and new entrants | Pressure on margins, market share loss, lower profitability |
| Economic Slowdown | Potential slowdown in India’s economic growth or global recession | Reduced demand for Vedanta’s products, lower earnings |
Vedanta Competitors
| Category | Indian Competitors | Global Competitors | Description |
|---|---|---|---|
| Aluminum | Hindalco Industries, National Aluminium Company Ltd. (NALCO) | Rio Tinto, Aluminum Corporation of China (Chalco) | Hindalco & NALCO are major domestic players, while Rio Tinto & Chalco are global giants. |
| Zinc | Hindustan Zinc (HZL) | Glencore, Nyrstar | HZL dominates the Indian zinc market, while Glencore & Nyrstar are top global producers. |
| Copper | Hindustan Copper Ltd. (HCL) | BHP Billiton, Freeport-McMoRan | HCL has a limited market share, while BHP & Freeport are global copper giants. |
| Iron Ore | NMDC, KIOCL | Vale, BHP Billiton | NMDC & KIOCL are major domestic players, while Vale & BHP are global leader in iron ore. |
| Oil & Gas | ONGC, Reliance Industries Ltd. (RIL) | ExxonMobil, Shell, BP | ONGC & RIL are dominant domestic players, while ExxonMobil, Shell & BP are global energy giants. |
| Power | NTPC, Tata Power | EDF, Enel, Iberdrola | NTPC & Tata Power are leading Indian power companies, while EDF, Enel & Iberdrola are international players. |
Vedanta Share Price FAQs
Q: How has the Vedanta share price performed recently?
A: Vedanta’s share price has been declining recently, down by 3.57% from its previous closing price of INR 261.65. It has also dipped 15.14% this year and has not fully recovered its pre-pandemic highs.
Q: What is the expected future outlook for the Vedanta share price?
A: Predicting the future is challenging, but analysts hold varying opinions on Vedanta’s future performance. Some believe the company has strong growth potential due to its expansion plans and India’s economic growth. Others highlight potential challenges like high debt, environmental concerns, and competition, urging caution.
Q: Is Vedanta a good investment?
A: Whether Vedanta is a good investment for you depends on your individual risk tolerance and investment goals. Consider the company’s financials, future outlook, risks associated with the mining and metals industry, and your own financial situation before making any investment decisions.
Q: Where can I find more information about Vedanta’s share price?
A: You can find real-time market data and historical charts on Vedanta’s share price on various financial websites like Moneycontrol, NSE, and BSE. Additionally, financial news publications and analyst reports can offer insights and forecasts about the company’s future performance.
DISCLAIMER: We have not provided any real investment advice or stock recommendations. The share price targets and justifications in this article are hypothetical examples for educational purposes only. Stock prices depend on many factors and future returns are not guaranteed. Readers should do their own research before investing. Or consult a registered financial advisor for guidance. We do not guarantee any stock performance or returns. Investing in stocks involves risks.
