Vedanta (NSEI:VEDL) - Share price, News & Analysis

VEDL fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	1/6
Past Performance	5/6
Financial Health	6/6
Dividends	5/6

VEDL Stock Overview

Vedanta Limited operates as a diversified natural resources company in India.

Rewards

Trading at 43.1% below our estimate of its fair value

Earnings have grown 7.8% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Vedanta Competitors

Reliance Industries

NSEI:RELIANCE

₹16.4t

BHP Group

ASX:BHP

AU$221.0b

Rio Tinto Group

LSE:RIO

UK£95.0b

Vale

BOVESPA:VALE3

R$406.3b

Price History & Performance

Summary of all time highs, changes and price drops for Vedanta
Historical stock prices
Current Share Price	₹307.85
52 Week High	₹440.75
52 Week Low	₹242.50
Beta	1.5
1 Month Change	-25.40%
3 Month Change	-15.10%
1 Year Change	15.62%
3 Year Change	91.75%
5 Year Change	34.52%
Change since IPO	3,886.40%

Shareholder Returns

	VEDL	IN Metals and Mining	IN Market
7D	-2.1%	-7.9%	-0.9%
1Y	15.6%	-4.2%	7.1%

Return vs Industry: VEDL exceeded the Indian Metals and Mining industry which returned -5.2% over the past year.

Return vs Market: VEDL exceeded the Indian Market which returned 5.6% over the past year.

Price Volatility

Is VEDL's price volatile compared to industry and market?
VEDL volatility
VEDL Average Weekly Movement	7.7%
Metals and Mining Industry Average Movement	7.5%
Market Average Movement	6.9%
10% most volatile stocks in IN Market	9.7%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: VEDL is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: VEDL's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1954	17,047	Sunil Duggal	https://www.vedantalimited.com

Vedanta Limited operates as a diversified natural resources company in India. It explores for, develops, extracts, produces, processes, and sells oil and gas, zinc, lead, silver, copper, aluminum, iron ore, steel, pig iron, and metallurgical coke. The company also operates a thermal coal-based commercial power facility of 600 megawatts (MW) at Jharsuguda in the State of Odisha in eastern India; 2 units of 300 MW thermal coal based power plants at Korba; 1,980 MW thermal coal- based commercial power facilities; 274MW of wind power plants; and a power plant situated at Mettur Dam in the state of Tamil Nadu in southern India.

Vedanta Fundamentals Summary

How do Vedanta's earnings and revenue compare to its market cap?
VEDL fundamental statistics
Market Cap	₹1.14t
Earnings (TTM)	₹188.02b
Revenue (TTM)	₹1.31t

6.1x

P/E Ratio

0.9x

P/S Ratio

Is VEDL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
VEDL income statement (TTM)
Revenue	₹1.31t
Cost of Revenue	₹564.20b
Gross Profit	₹747.72b
Other Expenses	₹559.70b
Earnings	₹188.02b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	50.75
Gross Margin	56.99%
Net Profit Margin	14.33%
Debt/Equity Ratio	64.2%

How did VEDL perform over the long term?

See historical performance and comparison

Dividends

18.8%

Current Dividend Yield

89%

Payout Ratio

Valuation

Is Vedanta undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

43.1%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: VEDL (₹307.85) is trading below our estimate of fair value (₹541.42)

Significantly Below Fair Value: VEDL is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: VEDL is good value based on its Price-To-Earnings Ratio (6.1x) compared to the Indian Metals and Mining industry average (12.8x).

PE vs Market: VEDL is good value based on its Price-To-Earnings Ratio (6.1x) compared to the Indian market (19.4x).

Price to Earnings Growth Ratio

PEG Ratio: VEDL is good value based on its PEG Ratio (0.9x)

Price to Book Ratio

PB vs Industry: VEDL is overvalued based on its Price-To-Book Ratio (1.7x) compared to the IN Metals and Mining industry average (1.5x).

Future Growth

How is Vedanta forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

6.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: VEDL's forecast earnings growth (6.7% per year) is below the savings rate (6.7%).

Earnings vs Market: VEDL's earnings (6.7% per year) are forecast to grow slower than the Indian market (17.4% per year).

High Growth Earnings: VEDL's earnings are forecast to grow, but not significantly.

Revenue vs Market: VEDL's revenue (1.7% per year) is forecast to grow slower than the Indian market (12% per year).

High Growth Revenue: VEDL's revenue (1.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: VEDL's Return on Equity is forecast to be high in 3 years time (26.6%)

Past Performance

How has Vedanta performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

7.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VEDL has high quality earnings.

Growing Profit Margin: VEDL's current net profit margins (14.3%) are higher than last year (13.3%).

Past Earnings Growth Analysis

Earnings Trend: VEDL's earnings have grown by 7.8% per year over the past 5 years.

Accelerating Growth: VEDL's earnings growth over the past year (62.1%) exceeds its 5-year average (7.8% per year).

Earnings vs Industry: VEDL earnings growth over the past year (62.1%) underperformed the Metals and Mining industry 88.9%.

Return on Equity

High ROE: VEDL's Return on Equity (28.7%) is considered high.

Financial Health

How is Vedanta's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: VEDL's short term assets (₹685.8B) exceed its short term liabilities (₹657.1B).

Long Term Liabilities: VEDL's short term assets (₹685.8B) exceed its long term liabilities (₹501.8B).

Debt to Equity History and Analysis

Debt Level: VEDL's net debt to equity ratio (24.6%) is considered satisfactory.

Reducing Debt: VEDL's debt to equity ratio has reduced from 100.2% to 64.2% over the past 5 years.

Debt Coverage: VEDL's debt is well covered by operating cash flow (65.8%).

Interest Coverage: VEDL's interest payments on its debt are well covered by EBIT (7.5x coverage).

Balance Sheet

Dividend

What is Vedanta current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

18.84%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: VEDL's dividend (18.84%) is higher than the bottom 25% of dividend payers in the Indian market (0.39%).

High Dividend: VEDL's dividend (18.84%) is in the top 25% of dividend payers in the Indian market (1.72%)

Stability and Growth of Payments

Stable Dividend: VEDL's dividend payments have been volatile in the past 10 years.

Growing Dividend: VEDL's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (88.7%), VEDL's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (88.3%), VEDL's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure

CEO

Sunil Duggal (59 yo)

2.08yrs

Tenure

₹91,600,000

Compensation

Mr. Sunil Duggal serves as the Chief Executive Officer at Vedanta Limited since August 1, 2020 and serves as its Whole Time Director since April 25, 2021. He had been Interim Chief Executive Officer of Ved...

CEO Compensation Analysis

Compensation vs Market: Sunil's total compensation ($USD1.18M) is about average for companies of similar size in the Indian market ($USD1.26M).

Compensation vs Earnings: Sunil's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: VEDL's management team is considered experienced (2.1 years average tenure).

Board Members

Experienced Board: VEDL's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/27 00:00
End of Day Share Price	2022/05/27 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31