NSEI:VEDL

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Good value average dividend payer.


Similar Companies

Share Price & News

How has Vedanta's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.8%

VEDL

0.9%

IN Metals and Mining

2.4%

IN Market


1 Year Return

-29.1%

VEDL

-27.4%

IN Metals and Mining

8.0%

IN Market

Return vs Industry: VEDL underperformed the Indian Metals and Mining industry which returned -27.4% over the past year.

Return vs Market: VEDL underperformed the Indian Market which returned 8% over the past year.


Shareholder returns

VEDLIndustryMarket
7 Day-2.8%0.9%2.4%
30 Day-6.2%-2.8%2.5%
90 Day-9.6%-9.3%3.6%
1 Year-22.4%-29.1%-24.3%-27.4%10.3%8.0%
3 Year-7.3%-26.9%0.2%-11.1%22.3%16.0%
5 Year-20.4%-40.5%3.0%-14.1%42.8%29.3%

Price Volatility Vs. Market

How volatile is Vedanta's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

34.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VEDL (₹149.15) is trading below our estimate of fair value (₹228.53)

Significantly Below Fair Value: VEDL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: VEDL is good value based on its PE Ratio (8x) compared to the Metals and Mining industry average (8.1x).

PE vs Market: VEDL is good value based on its PE Ratio (8x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: VEDL is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: VEDL is overvalued based on its PB Ratio (0.9x) compared to the IN Metals and Mining industry average (0.8x).


Next Steps

Future Growth

How is Vedanta forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

11.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VEDL's forecast earnings growth (11.6% per year) is above the savings rate (7.6%).

Earnings vs Market: VEDL's earnings (11.6% per year) are forecast to grow slower than the Indian market (18.4% per year).

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

Revenue vs Market: VEDL's revenue (6% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: VEDL's revenue (6% 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 low in 3 years time (14.4%).


Next Steps

Past Performance

How has Vedanta performed over the past 5 years?

35.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: VEDL's earnings have grown significantly by 35.8% per year over the past 5 years.

Accelerating Growth: VEDL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VEDL had negative earnings growth (-33.7%) over the past year, making it difficult to compare to the Metals and Mining industry average (15.1%).


Return on Equity

High ROE: VEDL's Return on Equity (12.1%) is considered low.


Return on Assets

ROA vs Industry: VEDL's Return on Assets is below or equal to the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: VEDL has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Vedanta's financial position?


Financial Position Analysis

Short Term Liabilities: VEDL's short term assets (₹598.3B) do not cover its short term liabilities (₹766.4B)

Long Term Liabilities: VEDL's short term assets (598.3B) exceeds its long term liabilities (478.8B)


Debt to Equity History and Analysis

Debt Level: VEDL's debt to equity ratio (85.4%) is considered high

Reducing Debt: VEDL's debt to equity ratio has increased from 75.2% to 85.4% over the past 5 years.

Debt Coverage: VEDL's debt is well covered by operating cash flow (35.9%).

Interest Coverage: VEDL's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet

Inventory Level: VEDL has a high level of physical assets or inventory.

Debt Coverage by Assets: VEDL's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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

12.64%

Current Dividend Yield


Dividend Yield vs Market

company12.6%marketbottom25%0.6%markettop25%2.4%industryaverage4.4%forecastin3Years9.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: VEDL's dividend (12.64%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: VEDL's dividend (12.64%) is in the top 25% of dividend payers in the Indian market (2.41%)

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.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (101.4%), VEDL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VEDL's dividends in 3 years are forecast to be covered by earnings (64.7% payout ratio).


Next Steps

Management

What is the CEO of Vedanta's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Venkat Venkatakrishnan (54yo)

0.6yrs

Tenure

0

Mr. Srinivasan Venkatakrishnan, also known as Venkat, B.Com, ACA (ICAI) has been Whole-Time Director and Chief Executive Officer of Vedanta Limited since March 1, 2019. Mr. Venkatakrishnan serves as Chief  ...


Management Age and Tenure

1.3yrs

Average Tenure

51yo

Average Age

Experienced Management: VEDL's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

2.7yrs

Average Tenure

63yo

Average Age

Experienced Board: VEDL's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Venkat Venkatakrishnan (54yo)

    CEO & Whole-Time Director

    • Tenure: 0.6yrs
  • Navin Agarwal (58yo)

    Executive Chairman

    • Tenure: 5.5yrs
    • Compensation: ₹307.08m
  • Lalita Afonso (56yo)

    Assistant Vice President of Corporate Finance

    • Tenure: 0yrs
    • Compensation: ₹6.10m
  • Vivek Mishra (46yo)

    Head of Iron Ore - Karnataka

    • Tenure: 0yrs
    • Compensation: ₹6.10m
  • Prerna Halwasiya

    Company Secretary & Compliance Officer

    • Tenure: 1.3yrs
    • Compensation: ₹5.02m
  • G. R. Kumar (48yo)

    CFO & Whole Time Director

    • Tenure: 2.9yrs
    • Compensation: ₹62.99m
  • Anup Agarwal (46yo)

    Senior Vice President of Corporate Finance

    • Tenure: 0yrs
    • Compensation: ₹17.00m
  • Arun Arora (56yo)

    Head of Corporate Communications

    • Tenure: 1.8yrs
    • Compensation: ₹14.20m
  • Aarti Raghavan

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Madhu Srivastava (45yo)

    Group Chief Human Resources Officer

    • Tenure: 0.8yrs

Board Members

  • Anil Agarwal (67yo)

    Chairman Emeritus

    • Tenure: 5.5yrs
  • Venkat Venkatakrishnan (54yo)

    CEO & Whole-Time Director

    • Tenure: 0.6yrs
  • Lalita Gupte (71yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: ₹8.60m
  • Tarun Jain (59yo)

    Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: ₹219.93m
  • Aman Mehta (73yo)

    Non-Executive Independent Director

    • Tenure: 2.4yrs
    • Compensation: ₹8.60m
  • Krishnamurthi Venkataramanan (75yo)

    Non-Executive Independent Director

    • Tenure: 2.5yrs
    • Compensation: ₹8.15m
  • Navin Agarwal (58yo)

    Executive Chairman

    • Tenure: 5.5yrs
    • Compensation: ₹307.08m
  • Priya Agarwal (30yo)

    Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: ₹8.10m
  • G. R. Kumar (48yo)

    CFO & Whole Time Director

    • Tenure: 2.9yrs
    • Compensation: ₹62.99m
  • Upendra Sinha (67yo)

    Additional Non-Executive Independent Director

    • Tenure: 1.6yrs
    • Compensation: ₹8.40m

Company Information

Vedanta Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vedanta Limited
  • Ticker: VEDL
  • Exchange: NSEI
  • Founded: 1965
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: ₹556.255b
  • Shares outstanding: 3.70b
  • Website: https://www.vedantalimited.com

Number of Employees


Location

  • Vedanta Limited
  • Unit 103, Corporate Avenue
  • 1st Floor, C wing
  • Mumbai
  • Maharashtra
  • 400093
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500295BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 1998
VEDLNSEI (National Stock Exchange of India)YesEquity SharesININRMay 1998
VEDLNYSE (New York Stock Exchange)ADS EACH REPR 4 ORD SHS SPONSUSUSDSep 2013
17SADB (Deutsche Boerse AG)ADS EACH REPR 4 ORD SHS SPONSDEEURSep 2013

Biography

Vedanta Limited operates as a diversified natural resources company in India. The company explores for, develops, produces, processes, and sells zinc, lead, silver, oil and gas, aluminum, power, iron ore,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 12:49
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.