NSEI:VEDL

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Average dividend payer with mediocre balance sheet.


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

Stable Share Price: VEDL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

VEDL

-2.3%

IN Metals and Mining

1.3%

IN Market


1 Year Return

-17.6%

VEDL

4.0%

IN Metals and Mining

4.3%

IN Market

Return vs Industry: VEDL underperformed the Indian Metals and Mining industry which returned 4% over the past year.

Return vs Market: VEDL underperformed the Indian Market which returned 4.3% over the past year.


Shareholder returns

VEDLIndustryMarket
7 Day-0.7%-2.3%1.3%
30 Day1.6%-4.7%1.8%
90 Day24.4%24.9%13.8%
1 Year-14.8%-17.6%7.6%4.0%6.3%4.3%
3 Year-48.3%-57.5%-22.0%-29.9%4.4%-0.5%
5 Year85.5%37.0%87.5%55.1%46.0%35.1%

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?

21.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VEDL (₹130.95) is trading below our estimate of fair value (₹165.79)

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


Price To Earnings Ratio

PE vs Industry: VEDL is unprofitable, so we can't compare its PE Ratio to the IN Metals and Mining industry average.

PE vs Market: VEDL is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VEDL's PEG Ratio to determine if it is good value.


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 11 analysts?

102.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VEDL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (7.2%).

Earnings vs Market: VEDL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: VEDL's is expected to become profitable in the next 3 years.

Revenue vs Market: VEDL's revenue (4.1% per year) is forecast to grow slower than the Indian market (11.7% per year).

High Growth Revenue: VEDL's revenue (4.1% 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 (12.2%).


Next Steps

Past Performance

How has Vedanta performed over the past 5 years?

53.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VEDL is currently unprofitable.

Growing Profit Margin: VEDL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VEDL is unprofitable, but has reduced losses over the past 5 years at a rate of 53% per year.

Accelerating Growth: Unable to compare VEDL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VEDL is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-35.6%).


Return on Equity

High ROE: VEDL has a negative Return on Equity (-6.61%), as it is currently unprofitable.


Next Steps

Financial Health

How is Vedanta's financial position?


Financial Position Analysis

Short Term Liabilities: VEDL's short term assets (₹575.2B) do not cover its short term liabilities (₹633.2B).

Long Term Liabilities: VEDL's short term assets (₹575.2B) exceed its long term liabilities (₹485.5B).


Debt to Equity History and Analysis

Debt Level: VEDL's debt to equity ratio (82.5%) is considered high.

Reducing Debt: VEDL's debt to equity ratio has reduced from 87% to 82.5% over the past 5 years.

Debt Coverage: VEDL's debt is well covered by operating cash flow (32.6%).

Interest Coverage: VEDL is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

2.98%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VEDL's dividend (2.98%) is higher than the bottom 25% of dividend payers in the Indian market (0.55%).

High Dividend: VEDL's dividend (2.98%) is in the top 25% of dividend payers in the Indian market (2.23%)


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.


Current Payout to Shareholders

Dividend Coverage: VEDL is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: VEDL's dividends in 3 years are forecast to be covered by earnings (70.9% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Sunil Duggal (58 yo)

0.42

Tenure

₹55,000,000

Compensation

Mr. Sunil Duggal serves as the Chief Executive Officer at Vedanta Limited since August 2020. He had been Interim Chief Executive Officer of Vedanta Limited since April 6, 2020 until August 2020. Mr. Duggal ...


CEO Compensation Analysis

Compensation vs Market: Sunil's total compensation ($USD0.00) is below average for companies of similar size in the Indian market ($USD1.02M).

Compensation vs Earnings: Sunil's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Navin Agarwal
Executive Vice Chairman0.42yr₹170.62mno data
G. R. Kumar
CFO & Whole Time Director3.83yrs₹58.10m0.00022%
₹ 1.1m
Prerna Halwasiya
Company Secretary & Compliance Officer2.17yrs₹4.64mno data
Sunil Duggal
Chief Executive Officer0.42yr₹55.00mno data
Lalita Afonso
Assistant Vice President of Corporate Financeno data₹6.10mno data
Anup Agarwal
Senior Vice President of Corporate Finance2.5yrs₹17.00m0.000010%
₹ 48.5k
James Cartwright
Head of Investor Relations0.92yrno datano data
Vineet Bose
Corporate Counsel0.92yrno datano data
Roma Balwani
Director of Communications & Brand0.92yr₹40.00mno data
Madhu Srivastava
Group Chief Human Resources Officer1.75yrsno data0.000090%
₹ 436.4k
Vivek Mishra
Head of Iron Ore - Karnatakano data₹6.10mno data
Sauvick Mazumdar
Chief Executive Officer of Iron Ore Businessno datano datano data

1.3yrs

Average Tenure

48yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Navin Agarwal
Executive Vice Chairman0.42yr₹170.62mno data
G. R. Kumar
CFO & Whole Time Director3.83yrs₹58.10m0.00022%
₹ 1.1m
Anil Agarwal
Non-Executive Chairman0.50yrno datano data
Lalita Gupte
Non-Executive Independent Director6.5yrs₹8.55mno data
Mahendra Sharma
Non-Executive Independent Director1.25yrs₹7.10mno data
Krishnamurthi Venkataramanan
Non-Executive Independent Director3.42yrs₹8.05mno data
Priya Agarwal
Non-Executive Director3.33yrs₹7.90mno data
Upendra Sinha
Non-Executive Independent Director2.5yrs₹8.40mno data

2.9yrs

Average Tenure

68yo

Average Age

Experienced Board: VEDL's board of directors are not considered experienced ( 2.9 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.


Top Shareholders

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: ₹484.884b
  • 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)SPONSORED ADRUSUSDSep 2013
17SADB (Deutsche Boerse AG)SPONSORED ADRDEEURSep 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 Analysis2020/09/19 19:22
End of Day Share Price2020/09/18 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.