Vedanta Ltd
NSE:VEDL

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Vedanta Ltd
NSE:VEDL
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Price: 448.4 INR 1.04% Market Closed
Market Cap: 1.8T INR
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Intrinsic Value

The intrinsic value of one VEDL stock under the Base Case scenario is 537.36 INR. Compared to the current market price of 448.4 INR, Vedanta Ltd is Undervalued by 17%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

VEDL Intrinsic Value
537.36 INR
Undervaluation 17%
Intrinsic Value
Price
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Base Case
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Vedanta Ltd

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

Economic Moat
Vedanta Ltd

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Business Breakdown

Vedanta Ltd., a key player in India's natural resources sector, operates as a diversified global miner and manufacturer with a substantial focus on metals and mining. Founded in 1976, the company has since evolved into one of India's largest producers of zinc, lead, silver, and oil and gas, contributing significantly to the country's mineral wealth. Vedanta’s integrated business model combines mining operations with value addition through semi-finished and finished products, enhancing profitability while lowering costs. With its headquarters in Mumbai, the company leverages a diverse portfolio of operations across several states in India, as well as in Africa and Australia. This geographical...

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Vedanta Ltd

Current Assets 519.2B
Cash & Short-Term Investments 279.7B
Receivables 70.2B
Other Current Assets 169.4B
Non-Current Assets 1.4T
Long-Term Investments 36.6B
PP&E 1.2T
Intangibles 48.1B
Other Non-Current Assets 133.7B
Current Liabilities 786.6B
Accounts Payable 101B
Other Current Liabilities 685.7B
Non-Current Liabilities 814.2B
Long-Term Debt 511.7B
Other Non-Current Liabilities 302.6B
Efficiency

Earnings Waterfall
Vedanta Ltd

Revenue
1.5T INR
Cost of Revenue
-431.8B INR
Gross Profit
1T INR
Operating Expenses
-747.6B INR
Operating Income
278.2B INR
Other Expenses
-226.1B INR
Net Income
52.1B INR

Free Cash Flow Analysis
Vedanta Ltd

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

In its most recent earnings call, Vedanta announced a record first-half EBITDA of INR 20,640 crores, reflecting a 46% year-over-year increase. The second quarter saw profit after tax soar by 230% to INR 4,467 crores. Strong operational performance was highlighted, with an EBITDA margin of 34%, a significant rise of 900 basis points. The company expects to sustain growth, projecting considerable contributions from upcoming projects. To enhance financial strength, Vedanta reduced net debt to INR 56,927 crores and aims for an annual EBITDA of over $650 million by the end of FY '25. Strategic investments in sustainable energy and cost optimization initiatives underscore its commitment to long-term value creation.

What is Earnings Call?
Fundamental Scores

VEDL Profitability Score
Profitability Due Diligence

Vedanta Ltd's profitability score is 60/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Positive Free Cash Flow
Positive 3-Year Average ROE
Positive 3-Years Revenue Growth
60/100
Profitability
Score

Vedanta Ltd's profitability score is 60/100. The higher the profitability score, the more profitable the company is.

VEDL Solvency Score
Solvency Due Diligence

Vedanta Ltd's solvency score is 34/100. The higher the solvency score, the more solvent the company is.

Long-Term Solvency
Positive Net Debt
Average D/E
Short-Term Solvency
34/100
Solvency
Score

Vedanta Ltd's solvency score is 34/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

VEDL Price Targets Summary
Vedanta Ltd

Wall Street analysts forecast VEDL stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for VEDL is 536.13 INR with a low forecast of 434.3 INR and a high forecast of 696.15 INR.

Lowest
Price Target
434.3 INR
3% Downside
Average
Price Target
536.13 INR
20% Upside
Highest
Price Target
696.15 INR
55% Upside
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Dividends

Dividend Yield
Lowest
Average
Highest
Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
Very
Unsafe
Unsafe
Safe
Very
Safe
0
25
50
75
100
Shareholder Yield

Current shareholder yield for VEDL is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
Lowest
Average
Highest
Buyback Yield
Lowest
Average
Highest
Debt Paydown Yield
Lowest
Average
Highest

Ownership

VEDL Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
Why is insider trading important?

Profile

Vedanta Ltd Logo
Vedanta Ltd

Country

India

Industry

Metals & Mining

Market Cap

1.7T INR

Dividend Yield

10.26%

Description

Vedanta Ltd. is a natural resource company, which engages in the exploration, extraction, and processing of minerals, oil, and gas properties. The company is headquartered in Panaji, Goa and currently employs 8,129 full-time employees. The firm produces aluminum, copper, zinc, lead, silver, iron ore, oil and gas, and commercial energy. The company operates through five reportable segments: oil and gas, aluminum, copper, iron ore and power. Its aluminum business includes a refinery and captive power plant at Lanjigarh and a smelter and captive power plants at Jharsuguda, both situated in the state of Odisha in Eastern India. Its power operations include a thermal coal-based commercial power facility of 600 megawatts (MW) at Jharsuguda. The company is also in the business of commercial power generation, steel manufacturing and port operations in India and manufacturing of glass substrates in South Korea and Taiwan. The company has operations in India, Zambia, Namibia and South Africa. Its subsidiaries include Cairn Energy Hydrocarbons Limited, Sesa Mining Corporation Limited, Copper Mines of Tasmania Pty Ltd and others.

Contact

GOA
Panaji
20, Sesa Ghor, EDC Complex, Patto
+918322460600
www.vedantalimited.com

IPO

1981-04-16

Employees

8 129

Officers

Executive Vice Chairman
Mr. Navin Kumar Agarwal
Chief Financial Officer
Mr. Ajay Kumar Goel
Deputy Head Investor Relations, Company Secretary & Compliance Officer
Ms. Prerna Halwasiya
Director of Communication & Corporate Social Responsibility, PR & Branding and CEO of Nand Ghar
Ms. Ritu Jhingon
Director of Group Commercial, Marketing & Risk
Mr. Shrikant Saboo
Chief Human Resources Officer
Ms. Madhu Srivastava
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Head of Commodities Procurement- Pig Iron Business
Mr. Swapnil Patil
Head of Ports
Mr. Manish Gupta
Senior VP of MAS & Risk Officer
Mr. Deodatta Padgaonkar
Chief Financial Officer of Zinc International Division & CMT
Mr. Pushpender Singla
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See Also

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What is the Intrinsic Value of one VEDL stock?

The intrinsic value of one VEDL stock under the Base Case scenario is 537.36 INR.

Is VEDL stock undervalued or overvalued?

Compared to the current market price of 448.4 INR, Vedanta Ltd is Undervalued by 17%.

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