DINESH

Vedanta Ltd

Industry: Diversified
Latest CMP 259
Today's Change ▼ -0.38%
52-Week High / Low 788 | 253
Price Date: 30-Sep-2026
Recommendation Buy
Target Price 724
Expected Upside 67.2%
Forecast Horizon 2 Years
Historical CAGR 23.2%
1,000 Invested 01-Oct-2006
Today's Value 65,344
Investment Period 20 Years

Stock Snapshot

Post Results Return
+1.0%
Neutral Market Reaction
1-Year Target Price
475
2-Year Target Price
724
52-Week High / Low
788 / 253
20-Day Return
-4.3%
Market Cap (Cr.)
101,269
Current PE
20.8
P/BV Ratio
2.0
Dividend Yield
13.8%
Industry PE
31.8

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

Balance Sheet Strength
Weak Cash Conversion
Market Share
Stable
Industry Outlook
Improving
Analyst View
Buy
Dividend History
Consistent
FII Holdings
Increasing

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
Consensus Recommendation ▲ Buy
Consensus Target 318
Coverage 8 Analysts
Analysts' Viewpoint
Vedanta's strategic focus on expanding its zinc, copper, and ferroalloy operations underpins its growth ambitions, aiming for a USD5b EBITDA by FY30. Key projects like Gamsberg Phase-II and Copper India's capacity expansion are progressing well, promising future growth. However, the company faces challenges with declining mined metal production at Zinc International and geopolitical issues affecting copper sales. Upcoming catalysts include the commissioning of the Hot Acid Leaching plant and the phosphoric acid plant, which are expected to enhance production capabilities.

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.