Vedanta Ltd
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Vedanta Limited's recent strategic initiatives, particularly the planned demerger of its real estate assets, are pivotal in unlocking significant value, as management aims to transition from a passive land-holding model to an active real estate platform. This move is expected to enhance revenue growth and improve margins, aligning with Vista's forecast of recovering revenue and expanding profitability. Additionally, Vedanta's commitment to technological innovation and sustainability, including AI-powered IoT and emissions control, positions the company favorably in a competitive landscape. However, challenges such as declining mined metal production and geopolitical issues affecting copper sales could temper growth. The diversified natural resources sector is experiencing improving pricing power, which supports Vedanta's margin outlook, despite slight declines in forecast margins. Over the next 12-24 months, key opportunities include successful execution of the demerger and expansion projects, while watchpoints involve operational challenges and market volatility. Overall, Vista's outlook reflects a balanced view, with expected upside driven by strategic growth initiatives and a fair valuation
Why We Like This Stock
- The planned demerger aims to unlock significant value from real estate assets, enhancing revenue potential
- Technological advancements and sustainability initiatives are expected to improve operational efficiency and margins
- The diversified nature of Vedanta's business segments mitigates risks and supports stable growth
Things To Watch Out For
- Declining mined metal production and geopolitical issues pose risks to revenue growth
- Operational challenges related to domestic coal availability may impact profitability
- Market volatility and inflationary pressures could temper investor sentiment and growth expectations
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 143,727 | 62,717 | 78,437 | 90,662 | 100,472 |
| Profit Before Tax (Cr.) | 17,676 | 11,808 | 17,126 | 23,289 | 25,883 |
| PBT Margin | 12.3% | 18.8% | 21.8% | 25.7% | 25.8% |
| Net Profit (Cr.) | 13,464 | 22,655 | 12,762 | 19,795 | 13,200 |
| Earnings Per Share | 26.0 | 43.8 | 12.9 | 30.4 | 33.8 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| ICICI Securities | ▲ Buy | 345 | 03-Aug-2026 |
| Motilal Oswal | ► Neutral | 290 | 03-Aug-2026 |
| JPMorgan | ▲ Buy | 312 | 08-Jul-2026 |
| Emkay Global | ▲ Buy | 350 | 30-Jun-2026 |
| Investec | ▲ Buy | 319 | 30-Jun-2026 |
| BPWealth | ▲ Buy | 331 | 18-May-2026 |
| Citigroup | ▼ Sell | 265 | 07-May-2026 |
| Nomura | ► Hold | 420 | 30-Apr-2026 |
Company Overview
Show Company Profile
Vedanta Limited, a diversified natural resources company, explores, extracts, and processes minerals, and oil and gas in India, Europe, China, the United States, Mexico, and internationally. The company explores, produces, and sells oil and gas, zinc, lead, silver, copper, aluminum, iron ores, and metallurgical coke. It also operates a thermal coal-based commercial power facility of 600 megawatts (MW) at Jharsuguda in Odisha; a 1,200 MW thermal coal-based power plants in the Chhattisgarh; 1,980 MW thermal coal- based commercial power facilities in Punjab; wind power plants; and a 1,000 MW coal-based power plant at Nellore, Andhra Pradesh. In addition, it manufactures and supplies billets, TMT bars, wire rods, and ductile iron pipes; mechanizes coal handling facilities and upgrades general cargo berth for handling coal at the outer harbor of Visakhapatnam Port on the east coast of India; offers port/berth services; and manufactures glass substrates, semiconductor, displays, ferro alloys, and slag cements. The company was formerly known as Sesa Sterlite Limited and changed its name to Vedanta Limited in March 2015. The company was founded in 1954 and is headquartered in Mumbai, India.