Vedanta Ltd (NSE: VEDL) share price: Vedanta stocks are back in focus. After Analyst Day, global brokerage house has upgraded Vedanta. Also, the target price has been increased.
The brokerage says that improvement in the operational performance of the company will be important for re-rating the stock. Vedanta’s share is currently trading at about a 12 percent discount from its 52-week high.
Vedanta: Rating Upgraded, Target Raised
Global brokerage house has upgraded Vedanta’s target from Sell to Reduce. Additionally, the price target was increased from Rs 265 to 278 rupees per share.
The share closed at Rs 262 on 28 February 2024. This stock has been flat in the last year. Whereas there has been an increase of 10 percent in 6 months. Vedanta’s 52-week high is 300.95 and the low is 208.
Vedanta: What Is The Brokerage’s Opinion?
There are many important things in the Analyst Day takeaway. EBITDA target by FY25/27 is $6bn/US$7.5bn. In FY24 it was US$5bn.
Capacity expansion, integration, and value addition (especially in aluminum, base metals, and power) will help in achieving the EBITDA target.
Capital allocation and corporate structure, along with deleveraging, have been a focal point in the last few years. Therefore, improvement in operational parameters will be very important for re-rating.
About Vedanta Ltd Company
Vedanta Ltd. is a company that deals in natural resources that focuses on mining, exploration, and processing of oil, minerals, or gas-related properties.
It is a company that operates in four segments: Copper Aluminum, Iron Ore, Power as well as Oil and Gas.
The segment for Copper concentrates on custom smelting and includes a copper smelter refinery, a phosphoric acid plant sulfuric acid plant as well as a copper rod facility, and three captive power plants.
This segment consists of a refinery as well as an electric power plant that is captive at Lanjigarh as well as a smelter. an energy-based thermal coal captive power facility in Jharsuguda located inside Odisha, a State of Odisha in India.
This Iron Ore segment explores, mines, and refines iron ore, pig iron, and coke that is metallurgical.
The Power section is comprised of 600 MW of thermal commercial power facility based on coal located at Jharsuguda within Odisha, a State of Odisha in Eastern India.
The Oil and Gas segment is involved in the development, exploration, and extraction of gas, and oil.
This company was established on the initiative of Anil Kumar Agarwal, who was born on the 25th of June 25, 1965. It is located in Panaji, India.
Fundamental Analysis of Vedanta Ltd
| Market Cap | ₹ 98,766 Cr. |
| Current Price | ₹ 262 |
| 52-wk High | ₹ 301 |
| 52-wk Low | ₹ 208 |
| Stock P/E | 19.8 |
| Book Value | ₹ 85.0 |
| Dividend | 38.1 % |
| ROCE | 21.2 % |
| ROE | 20.4 % |
| Face Value | ₹ 1.00 |
| P/B Value | 3.17 |
| OPM | 24.6 % |
| EPS | ₹ 12.8 |
| Debt | ₹ 75,064 Cr. |
| Debt to Equity | 2.38 |
| Year | 1st Target | 2nd Target |
| 2024 | ₹ 312 | ₹ 395 |
| 2025 | ₹ 440 | ₹ 520 |
| 2026 | ₹ 586 | ₹ 632 |
| 2027 | ₹ 700 | ₹ 742 |
| 2028 | ₹ 800 | ₹ 841 |
| 2029 | ₹ 890 | ₹ 940 |
| 2030 | ₹ 1025 | ₹ 1124 |
| Promoters Holding | |
| Dec 2022 | 69.68% |
| Mar 2023 | 68.11% |
| June 2023 | 68.11% |
| Sept 2023 | 63.71% |
| Dec 2023 | 63.71% |
| FII Holding | |
| Dec 2022 | 7.90% |
| Mar 2023 | 7.89% |
| June 2023 | 7.48% |
| Sept 2023 | 7.82% |
| Dec 2023 | 7.74% |
| DII Holding | |
| Dec 2022 | 11.05% |
| Mar 2023 | 10.20% |
| June 2023 | 9.98% |
| Sept 2023 | 10.59% |
| Dec 2023 | 11.19% |
| Govt. Holding | |
| Dec 2022 | 0.07% |
| Mar 2023 | 0.07% |
| June 2023 | 0.07% |
| Sept 2023 | 0.07% |
| Dec 2023 | 0.07% |
| Public Holding | |
| Dec 2022 | 11.07% |
| Mar 2023 | 13.63% |
| June 2023 | 14.29% |
| Sept 2023 | 17.74% |
| Dec 2023 | 17.23% |
| Others Holding | |
| Dec 2022 | 0.22% |
| Mar 2023 | 0.11% |
| June 2023 | 0.08% |
| Sept 2023 | 0.08% |
| Dec 2023 | 0.06% |
To better understand how the market is performing, let’s look at the outlook of this share in the previous years.
However, investors should be aware of the risks and the market conditions before making any investment decision.
Last 5 Years’ Sales:
| 2019 | ₹ 92,048 Cr |
| 2020 | ₹ 84,447 Cr |
| 2021 | ₹ 88,021 Cr |
| 2022 | ₹ 132,732 Cr |
| 2023 | ₹ 146,149 Cr |
Last 5 Years’ Net Profit:
| 2019 | ₹ 9,698 Cr |
| 2020 | ₹ -4,744 Cr |
| 2021 | ₹ 15,032 Cr |
| 2022 | ₹ 23,710 Cr |
| 2023 | ₹ 8,393 Cr |
Last 5 Years’ Debt-To-Equity Ratio:
| 2019 | 0.93 |
| 2020 | 1.08 |
| 2021 | 0.8 |
| 2022 | 0.81 |
| 2023 | 1.68 |
Last 10 Years’ Profit Growth:
| 10 Years: | 17% |
| 5 Years: | 4% |
| 3 Years: | -10% |
| Current Year: | -65% |
Last 10 years’ Return on Equity (ROE):
| 10 Years: | 14% |
| 5 Years: | 21% |
| 3 Years: | 24% |
| Last Year: | 20% |
Sales Growth Over 10 Years:
| 10 Years: | 49% |
| 5 Years: | 10% |
| 3 Years: | 20% |
| Current Year: | -2% |
Conclusion
This article is a complete guide about Vedanta Ltd Share. This information and forecasts are based on our research, company fundamentals, history, experiences, and technical analyses.
Also, We have discussed the share’s prospects and growth potential in detail.
This information will help you in your further investment.
If you are new to our website and want to get all the latest updates related to the stock market, join us on Telegram Group.
If you have any further queries, please comment below. We will be happy to answer all your questions.
If you like this information, share the article with as many people as possible.
Disclaimer: Dear readers, we’d like to inform you that we are not authorized by SEBI (Securities and Exchange Board of India). The information on this site is only for informational and educational purposes and shouldn’t be considered financial advice or stock recommendations. Also, the share price predictions are completely for reference purposes. The price predictions will only be valid when there are positive signs on the market. Any uncertainty about the company’s future or the current state of the market will not be considered in this study. We are not responsible for any financial loss you might incur through the information on this site. We provide timely updates about the stock market and financial products to help you make better investment choices. Do your research before any investment.
