Vedanta Limited is a leading global conglomerate operating in India, South Africa, Liberia, and Namibia. With 20 years of growth, it contributes 65% of its revenues from India, 9% from Malaysia, 3% from China, 1% from the UAE, and 22% from other regions. The company’s diversified portfolio covers 10 sectors, including Oil and gas, Zinc-Lead-Silver, Aluminium, Iron Ore, Steel, Copper, Ferro Alloys, Power, Nickel, Semiconductor, and Glass.
Committed to sustainability, Vedanta pledges $5 billion over 10 years to achieve net-zero carbon emissions by 2050 or sooner, while maintaining top-notch governance, safety, and social responsibility standards. Listed on BSE and NSE, it strives for long-term stakeholder value.
You can get all the information you require on our website before deciding to buy shares of Vedanta.
Vedanta’s Proposed Coal Mine Faces Opposition in Jharsuguda’s Public Hearing
Tension flared up in Jharsuguda’s Lakhanpur block during a public hearing over Vedanta Limited’s coal mine. Locals who would be displaced if the mine is approved were allegedly denied entry into the meeting venue by Vedanta supporters. The confrontation led to the deployment of 25 police platoons to maintain order. The locals demanded that the public hearing include all affected beneficiaries from three Panchayats, threatening to block the mining if their demands were not met.
Vedanta Q2 2024 Results Highlights
- Vedanta reported a net loss of Rs 915 crore for Q2, a significant decline from a net profit of Rs 2,690 crore in the same period last year.
- Exceptional expenses were the primary cause of the net loss, and when excluded, the company’s net profit stood at Rs 4,403 crore.
- Despite the net loss, Vedanta achieved a strong operational performance with an EBITDA margin of 28.7 percent, a significant improvement from 20.1 percent in the previous year.
- Revenue increased by 6.4 percent to Rs 38,546 crore in Q2, the highest ever for the second quarter, and a 16 percent sequential increase.
- The company provided cost and production guidance for various segments in FY24, including Zinc, Aluminium, and Iron Ore.
- Vedanta reduced its net debt by Rs 1,420 crore sequentially to Rs 57,771 crore by the end of the September quarter, resulting in a lower net debt-to-EBITDA ratio.
- Vedanta announced a restructuring plan to split its business into six listed companies, aiming to unlock value and ease its debt burden.
- The company faces bond repayments of $3.2 billion over the next two years, with $2 billion due in 2024 and $1.2 billion in 2025.
Vedanta Stock Price is Going Down – Q2 Results Bad: What Went Wrong?
Vedanta adopted the new tax regime and paid 22% tax instead of 30%, from the financial year 2022-23, saving Rs. 1,650 as tax. The company with this approach will be saving a lot of taxes in the future. Promoter’s shareholding reduced from 68.11% in the June Quarter to 63.81% in the September Quarter. This is not a good sign for any business.
MAT balance of Rs. 7700 plus crore got reduced because of the company adopting the new tax regime. This is a short term pain. The Reserve in the balance sheet got reduced. Borrowings are growing. Interest the company needs to pay is growing at fast pace.
For the business to proper, the company needs to reduce the debt, and make the financials better. At this point, the financials are deteoirating.
In my opinion, things are not looking good for Vedanta and its share holders.
Below are the trading platforms that you can use to purchase Vedanta shares:
- Zerodha (Most recommended)
- Olymp Trade
- ICICI Direct
|When||Maximum Price||Minimum Price|
In November 2023, Vedanta’s share price is expected to fluctuate between a maximum of ₹256.30 and a minimum of ₹233.00. As the year draws to a close in December 2023, the price is projected to range from a maximum of ₹264.76 to a minimum of ₹240.69. These price targets suggest potential market movements, and investors should closely monitor the stock’s performance.
As of November 5th, 2023, Vedanta’s current share price stands at ₹233. With a market capitalization of ₹86,518 crore, the stock holds a price-to-earnings (P/E) ratio of 17.4, indicating its valuation in the market. Investors should consider these figures and market trends when making investment decisions in Vedanta.
|When||Maximum Price||Minimum Price|
In the upcoming year 2024, Vedanta’s share price is expected to show a varying trend. In January, it’s projected to range from a maximum of ₹270.16 to a minimum of ₹234.92, indicating potential fluctuations. This pattern continues throughout the year, with prices increasing and decreasing month by month.
By December 2024, the stock is estimated to reach a maximum of ₹308.95 and a minimum of ₹268.65. These forecasts highlight a dynamic market environment for Vedanta, and investors should closely monitor the stock’s performance as it can significantly impact their investment decisions and overall portfolio strategies.
|When||Maximum Price||Minimum Price|
In 2025, Vedanta’s share price appears to exhibit a positive trajectory, reflecting potential growth and investor confidence. The year begins with the stock trading in the range of ₹242.41 to ₹315.13 in January. This trend continues throughout the year, with prices steadily increasing. By December 2025, the stock is expected to reach its highest point with a maximum price of ₹376.65, while the minimum price is projected to be ₹289.73.
These price projections suggest a consistent upward movement in Vedanta’s stock throughout 2025. It indicates a favorable outlook for the company, possibly driven by strong operational performance, positive market sentiment, or other factors contributing to investor optimism.
|Year||Maximum Price||Minimum Price|
The share price projections for Vedanta from 2026 to 2030 indicate a promising outlook for the company. In 2026, the stock is expected to trade in the range of ₹276.84 to ₹395.49, showing potential growth. Subsequently, 2027 presents a higher range, with the stock projected to trade between ₹304.53 and ₹435.04, demonstrating continued positive momentum. The most notable development is expected in 2028, with the stock’s maximum price potentially reaching ₹609.05, reflecting a substantial increase.
While 2029 anticipates a more moderate range, with prices varying between ₹263.66 and ₹527.32, the year 2030 showcases significant potential with a range of ₹479.86 to ₹685.51. These forecasts highlight a favorable long-term perspective for Vedanta, encouraging investors to consider the company’s growth prospects and market performance over the coming years.
Vedanta Financial Condition: Last Five Years
|Narration||Mar 2019||Mar 2020||Mar 2021||Mar 2022||Mar 2023|
|Profit before tax||13,560||-8,259||17,213||32,964||20,276|
|EPS in Rs||19.01||-17.93||31.21||50.58||28.45|
|Dividend Payout %||99%||-22%||30%||89%||357%|
The financial data for Vedanta over the years 2019 to 2023 presents a mixed performance for the company.
Sales experienced fluctuations, reaching a peak of 147,308 Crores in 2023 after a slight dip in 2019 to 2021. Sale mostly went up in the last 2 years.
The company’s expenses also varied but generally remained below sales figures. Operating profit demonstrated growth over the years, reaching 44,824 Crores in 2022, but experienced a decline in 2023.
The Operating Profit Margin (OPM) remained relatively stable, hovering around 25% to 34%. Other Income showed significant volatility, with a major drop in 2020 but a recovery in the subsequent years. Interest expenses and Depreciation remained relatively consistent over the years.
Profit before tax had its challenges, experiencing a loss in 2020 but rebounding in the following years. Net profit showcased fluctuations but generally displayed a positive trend. However, investors should be cautious of the fluctuating dividend payout percentage, which peaked at 357% in 2023.
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Frequently Asked Questions
How much money does Vedanta’s market capitalization total?
The market capitalization of the outstanding shares of a publicly traded firm, commonly referred to as the “market cap,” is what determines its market value. Vedanta’s market worth as of November 5th, 2023, is ₹ 86,518 Cr.
In 2024, what do you predict the share price of Vedanta will be?
The pricing objectives of Vedanta are broken down into two ranges: the lowest is ₹234.92 and the maximum is ₹308.95 for the year 2024.
What is the Vedanta Share Price Target for 2025?
Vedanta’s price targets for 2025 are ₹376.65 and ₹242.41 respectively, with the former being the highest and latter being the lowest.
What will Vedanta’s share price be in 2030?
The target prices set by Vedanta for 2030 range from ₹685.51 to ₹479.86 with ₹ 685.51 being the highest.
Can Vedanta reach 500 INR?
In my opinion, Vedanta is expected to reach, Rs. 500 sometime after 2028, however, Vedanta needs to fix its issues for that to happen. I believe the stock might correct by another 20-30% before it takes off.
Based on tour analysis earlier about Vedanta, we can make the following observations about the growth and performance of the company:
Revenue Growth: Vedanta has shown a good revenue growth over the last 2 years. From 2021 to 2023, the company’s sales increased from ₹88,021 crores to ₹147,308 crores. This indicates the company’s ability to expand its business and generate higher sales across its diverse range of natural resources and technology ventures.
Operating Profit: Despite facing challenges such as fluctuating commodity prices, Vedanta managed to maintain a positive operating profit in most years. This demonstrates the company’s ability to effectively manage its operations and control costs to sustain profitability. Operating Profit margin for Vendata in the last 5 years has always been above 20%.
Other Income and Interest: The company’s other income has been fluctuating, and it faced a substantial interest expense in 2023. Careful attention to managing financial costs and exploring avenues for additional income will be essential for its financial health.
Net Profit and EPS: Vedanta’s net profit experienced fluctuations and its earnings per share (EPS) also varied. This highlights the impact of various factors on Vedanta’s bottom line and its potential to reward shareholders. Vedanta posted an FY 2022 net profit of Rs.23,710 Crore, which has been the best in the last 5 years. The company needs to post sales and profit growth of more than 10-15% YOY.
Dividend Payout: The dividend payout recently has been very concerning. While the investors enjoyed a healthy dividend, paying such high dividends may lead the company to bad financials.
Growth Initiatives and Commitment to Sustainability: Vedanta’s commitment to reducing carbon emissions and transitioning to net-zero operations by 2050 or sooner demonstrates its awareness of environmental concerns and its efforts to implement sustainable practices.
Overall, Vedanta appears to be a diversified natural resources company with a strong presence in India and other regions. Its performance is influenced by global economic conditions, commodity prices, and industry-specific factors. The company’s growth and profitability potential depend on its ability to navigate challenges, capitalize on opportunities, and adhere to sustainable practices.
I personally would be staying away from Vedanta unless it corrects by another 30-40% before taking a new position. I do not hold Vedanta at this point. Investors invested in Vedanta should be closely monitoring news around Vedanta, before taking any financial decision.
As with any investment, it is crucial for investors to conduct thorough research, monitor company updates, and seek professional advice from SEBI-registered advisors before making any decisions about investing in Vedanta’s stock.
P.S. This is not a financial advice. The content is meant for education only.
What did we learn?
- 1 Vedanta’s Proposed Coal Mine Faces Opposition in Jharsuguda’s Public Hearing
- 2 Vedanta Q2 2024 Results Highlights
- 3 Vedanta Stock Price is Going Down – Q2 Results Bad: What Went Wrong?
- 4 How to Purchase Vedanta Shares?
- 5 Vedanta Share Price Target 2023-2030
- 6 Vedanta Financial Condition: Last Five Years
- 7 Frequently Asked Questions
- 8 Can Vedanta reach 500 INR?