Vedanta Ltd
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Vedanta Ltd's recent developments indicate a cautiously optimistic outlook, driven by management's commitment to strategic expansions and technological innovations. The company aims to achieve USD 5 billion in EBITDA by FY30, supported by projects like Gamsberg Phase-II and capacity expansions in copper and ferroalloys. However, challenges such as declining mined metal production and geopolitical issues affecting copper sales could impact growth. Vista's financial outlook reflects early revenue recovery and improving margins, aligning with management's growth targets. The company's fair valuation suggests potential upside, particularly as it navigates operational challenges. Industry trends, including improving pricing power and stable demand, further support Vedanta's growth trajectory. Over the next 12-24 months, key opportunities include successful project completions and advancements in digital innovation, while headwinds may arise from production declines and geopolitical uncertainties
Why We Like This Stock
- Management's target of USD 5 billion EBITDA by FY30 highlights strong growth ambitions supported by key project expansions
- Improvements in margins and early revenue recovery align with Vista's positive financial outlook
- Technological innovations in operational efficiency and sustainability could enhance competitive positioning
Things To Watch Out For
- Declining mined metal production at Zinc International poses a risk to revenue growth
- Geopolitical issues are negatively impacting copper sales, particularly at the Fujairah facility
- Weak cash conversion relative to the asset base may hinder financial flexibility
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 143,727 | 152,968 | 78,437 | 89,277 | 85,691 |
| Profit Before Tax (Cr.) | 17,676 | 24,818 | 17,126 | 31,532 | 27,454 |
| PBT Margin | 12.3% | 16.2% | 2183.4% | 35.3% | 32.0% |
| Net Profit (Cr.) | 7,336 | 18,405 | 12,762 | 26,802 | 14,001 |
| Earnings Per Share | 10.3 | 32.9 | 12.9 | 41.1 | 35.8 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| BPWealth | ▲ Buy | 331 | 18-May-2026 |
| Citigroup | ▼ Sell | 265 | 07-May-2026 |
| Emkay Global | ▲ Buy | 350 | 30-Jun-2026 |
| Investec | ▲ Buy | 319 | 30-Jun-2026 |
| JPMorgan | ▲ Buy | 445 | 07-Apr-2026 |
| Motilal Oswal | ► Neutral | 290 | 03-Aug-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.