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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 500295 | NSE: VEDL

Fundamental Analysis of Vedanta Ltd

About the Company - Vedanta Ltd

Vedanta Ltd. is a Public Limited Listed company incorporated on 25/06/1965 and has its registered office in the State of Goa, India. Company’s Corporate Identification Number(CIN) is L13209MH1965PLC291394 and registration number is 291394. Currently Company is involved in the business activities of Manufacture of aluminium from alumina and by other methods and products of aluminium and alloys. Company’s Total Operating Revenue is Rs. 63277.00 Cr. and Equity Capital is Rs. 372.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Mining/Minerals1st Floor, 'C' Wing, Unit 103, Corporate Avenue, Mumbai Maharashtra 400093comp.sect@vedanta.co.in
http://www.vedantalimited.com
Management
NamePosition Held
Mr. Anil AgarwalNon Executive Chairman
Mr. Navin AgarwalExecutive Vice Chairman
Mr. Sunil DuggalWholeTime Director & CEO
Ms. Priya AgarwalNon Exe.Non Ind.Director
Mr. Upendra Kumar SinhaInd. Non-Executive Director
Mr. Akhilesh JoshiInd. Non-Executive Director
Mr. Dindayal JalanInd. Non-Executive Director
Ms. Padmini SomaniInd. Non-Executive Director

Vedanta Ltd. Share Price Update

Share PriceValue
Today₹268.55
Previous Day₹271.35

Basic Stock Data of Vedanta Ltd

Market Cap 1,00,067 Cr.
Current Price 269
High / Low305/208
Stock P/E20.1
Book Value 85.0
Dividend Yield37.7 %
ROCE21.2 %
ROE20.4 %
Face Value 1.00

Data Source: screener.in

Competitors of Vedanta Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Redington Ltd 16,495 Cr. 211220/13613.8 88.23.40 %24.9 %21.9 % 2.00
Orissa Minerals Development Company Ltd 4,069 Cr. 6,7828,344/2,295 43.00.00 %1.48 %% 1.00
NMDC Ltd 69,910 Cr. 239253/10412.2 83.62.78 %30.2 %23.0 % 1.00
20 Microns Ltd 546 Cr. 155201/62.810.4 91.10.48 %19.3 %15.3 % 5.00
Rajdarshan Industries Ltd 15.5 Cr. 49.964.4/26.422.5 71.00.00 %1.52 %1.42 % 10.0
Industry Average130.1 Cr132.1811.7875.381.33%15.48%12.32%3.8

Vedanta Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales22,73528,20628,41230,40134,09739,82238,62236,65434,10237,93033,73338,94535,541
Expenses14,97819,16918,54119,98723,28726,18928,42528,95527,03528,47127,31327,46627,010
Operating Profit7,7579,0379,87110,41410,81013,63310,1977,6997,0679,4596,42011,4798,531
OPM %34%32%35%34%32%34%26%21%21%25%19%29%24%
Other Income886866055764722757339311,619-6312,3261,863779
Interest1,3211,3251,1821,0661,2161,3331,2061,6421,5721,8052,1102,5232,417
Depreciation1,9122,0552,1242,1182,2742,3792,4642,6242,7202,7652,5502,6422,788
Profit before tax5,4105,7437,1707,8067,79210,1967,2604,3644,3944,2584,0868,1774,105
Tax %22%-33%26%26%31%29%23%38%30%26%19%111%30%
Net Profit4,2247,6285,2835,8125,3547,2615,5932,6873,0913,1323,308-9152,868
EPS in Rs8.8717.3011.3612.4211.2015.6011.894.866.635.067.10-4.805.42

Vedanta Ltd Quarterly Chart

Vedanta Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales8,9782,74966,15273,71064,26272,22591,86692,04884,44788,021132,732147,308146,149
Expenses5,4782,28346,55751,59582,74150,84966,98968,87763,70460,70387,908112,877110,260
Operating Profit3,50046519,59522,114-18,47921,37624,87723,17120,74327,31844,82434,43135,889
OPM %39%17%30%30%-29%30%27%25%25%31%34%23%25%
Other Income168331,874-19,2224,2904,4236,0874,270-14,9322,7431,8322,6254,337
Interest4334755,0945,6595,7785,8555,1125,6894,9775,2104,7976,2258,855
Depreciation1061976,8827,1598,5726,2926,2838,1929,0937,6388,89510,55510,745
Profit before tax3,129-1749,493-9,925-28,54013,65219,56913,560-8,25917,21332,96420,27620,626
Tax %33%25%-9%-15%37%17%30%28%43%13%28%28%
Net Profit2,6962,28011,421-11,369-17,86211,31613,6929,698-4,74415,03223,71014,5038,393
EPS in Rs31.0126.2421.25-52.77-41.3923.4727.8219.01-17.9331.2150.5828.4512.78
Dividend Payout %13%0%15%-8%-8%83%76%99%-22%30%89%357%

Vedanta Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-15.43%400.92%-199.54%-57.11%163.35%21.00%-29.17%-148.92%416.86%57.73%-38.83%
Change in YoY Net Profit Growth (%)0.00%416.35%-600.47%142.43%220.46%-142.36%-50.17%-119.75%565.78%-359.13%-96.56%

Redington Ltd Growth

Compounded Sales Growth
10 Years:49%
5 Years:10%
3 Years:20%
TTM:-2%
Compounded Profit Growth
10 Years:17%
5 Years:4%
3 Years:-10%
TTM:-65%
Stock Price CAGR
10 Years:4%
5 Years:10%
3 Years:12%
1 Year:-12%
Return on Equity
10 Years:14%
5 Years:21%
3 Years:24%
Last Year:20%

Vedanta Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital8787296296296297372372372372372372372
Reserves15,03117,38872,71253,57943,74360,12862,94061,92554,26361,90665,01139,05131,211
Preference Capital000000002200
Borrowings3,7414,83980,56677,75267,77871,56958,15966,22659,18557,66753,58366,62875,064
Other Liabilities1,54272360,54558,65480,16364,95258,89670,04566,91763,55174,98184,38386,925
Total Liabilities20,40123,037214,120190,281191,980196,946180,367198,568180,737183,496193,947190,434193,572
Fixed Assets3,3074,13687,20570,10861,59175,63178,45586,32786,12788,00289,49890,32299,274
CWIP83772343,12838,74838,46127,55732,05524,95918,58516,31415,87919,69019,636
Investments14,16716,05937,91039,60653,38646,96228,70033,06524,75316,66017,29113,15012,855
Other Assets2,0902,11945,87741,81938,54246,79641,15754,21751,27262,52071,27967,27261,807
Total Assets20,40123,037214,120190,281191,980196,946180,367198,568180,737183,496193,947190,434193,572

Vedanta Ltd Reserves and Borrowings Chart

Redington Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 2,2152215,60117,80520,37718,08317,36623,75419,30023,98034,96333,065
Cash from Investing Activity -4,724-311-2,890-4,133-7,8682,68115,480-10,594-5,925-6,678-2,243-668
Cash from Financing Activity 1,726238-5,052-13,956-11,303-12,425-39,255-10,242-15,547-17,565-28,903-34,142
Net Cash Flow-784-517,659-2841,2068,339-6,4092,918-2,172-2633,817-1,745

Vedanta Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days221925181411161612141410
Inventory Days328143129132161135184184153147124
Days Payable3336678267308202242275245221205
Cash Conversion Cycle181910269-120-136-51-42-80-77-61-71
Working Capital Days14118-47-22-149-175-95-120-129-68-34-65
ROCE %22%2%13%9%-14%11%15%14%10%17%28%21%

Vedanta Ltd Financial Efficiency Indicators Chart

Vedanta Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters55.11%65.18%65.18%69.69%69.69%69.69%69.68%69.68%68.11%68.11%63.71%63.71%
FIIs16.27%10.29%8.69%8.67%9.35%8.68%8.09%7.90%7.89%7.48%7.82%7.74%
DIIs11.62%10.60%11.93%10.84%11.60%11.57%10.37%11.05%10.20%9.98%10.59%11.19%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.07%0.07%0.07%0.07%0.07%0.07%
Public16.67%13.61%13.88%10.56%9.13%9.84%11.57%11.07%13.63%14.29%17.74%17.23%
Others0.33%0.32%0.32%0.25%0.23%0.22%0.22%0.22%0.11%0.08%0.08%0.06%
No. of Shareholders5,86,5576,21,0576,69,9667,15,4467,43,5829,51,22813,26,95312,98,59914,11,55115,65,26419,42,80019,09,460

Vedanta Ltd Shareholding Pattern Chart

No. of Vedanta Ltd Shareholders

Redington Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
SBI Arbitrage Opportunities Fund112217001.15307.31
Kotak Equity Arbitrage Fund - Regular Plan102074000.78279.53
Aditya Birla Sun Life Arbitrage Fund67321001.88184.36
Tata Arbitrage Fund42665001.21116.84
Nippon India Arbitrage Fund39376000.82107.83
Nippon India ETF Nifty Next 50 Junior BeES33863552.292.74
Axis Arbitrage Fund32752002.3589.69
ICICI Prudential Nifty Next 50 Index Fund31209952.285.47
ICICI Prudential Equity - Arbitrage Fund30958000.5284.78
ICICI Prudential Bluechip Fund30297060.1782.97

Vedanta Ltd ROCE Trend

Vedanta Ltd EPS Trend

Vedanta Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)28.5050.7331.32-18.0019.07
Diluted EPS (Rs.)28.5050.7331.13-18.0018.98
Cash EPS (Rs.)67.3787.6560.9411.6948.09
Book Value[Excl.RevalReserv]/Share (Rs.)132.87222.32208.11192.87208.40
Book Value[Incl.RevalReserv]/Share (Rs.)132.87222.32208.11192.87208.40
Revenue From Operations / Share (Rs.)395.99356.81236.62227.01247.44
PBDIT / Share (Rs.)100.20127.4882.6362.3672.91
PBIT / Share (Rs.)71.82103.5762.1037.9150.88
PBT / Share (Rs.)54.5188.6146.27-22.2036.45
Net Profit / Share (Rs.)38.9963.7340.41-12.7526.07
NP After MI And SOA / Share (Rs.)28.4250.5431.19-17.9118.99
PBDIT Margin (%)25.3035.7234.9227.4629.46
PBIT Margin (%)18.1329.0226.2416.7020.56
PBT Margin (%)13.7624.8319.55-9.7814.73
Net Profit Margin (%)9.8417.8617.07-5.6110.53
NP After MI And SOA Margin (%)7.1714.1613.18-7.897.67
Return on Networth / Equity (%)26.8228.7518.62-12.1911.34
Return on Capital Employeed (%)24.6628.9918.2511.7215.09
Return On Assets (%)5.389.466.24-3.623.49
Long Term Debt / Equity (X)1.100.550.600.670.55
Total Debt / Equity (X)1.680.810.791.080.92
Asset Turnover Ratio (%)0.380.370.230.210.23
Current Ratio (X)0.681.040.950.900.78
Quick Ratio (X)0.510.820.780.720.60
Inventory Turnover Ratio (X)2.452.571.661.321.58
Dividend Payout Ratio (NP) (%)355.3288.7130.33-25.45119.05
Dividend Payout Ratio (CP) (%)177.8260.2218.2969.8255.12
Earning Retention Ratio (%)-255.3211.2969.67125.45-19.05
Cash Earning Retention Ratio (%)-77.8239.7881.7130.1844.88
Interest Coverage Ratio (X)5.999.895.904.664.77
Interest Coverage Ratio (Post Tax) (X)3.376.104.023.542.65
Enterprise Value (Cr.)169120.40204921.40133226.8087442.00132916.00
EV / Net Operating Revenue (X)1.151.541.511.041.44
EV / EBITDA (X)4.544.324.333.774.90
MarketCap / Net Operating Revenue (X)0.691.130.960.280.74
Retention Ratios (%)-255.3211.2869.66125.45-19.05
Price / BV (X)2.592.301.370.441.10
Price / Net Operating Revenue (X)0.691.130.960.280.74
EarningsYield0.100.120.13-0.270.10

Vedanta Ltd Profitability Ratios (%)

Vedanta Ltd Liquidity Ratios

Vedanta Ltd Liquidity Ratios (%)

Vedanta Ltd Interest Coverage Ratios (X)

Vedanta Ltd Valuation Ratios

Fair Value / Intrinsic Value of Vedanta Ltd

Fair Value: ₹479.93

The stock is undervalued by 78.41% compared to the current price ₹269

*Investments are subject to market risks

Strength and Weakness of Vedanta Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of -64.33, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -35.83, which is a positive sign.
  3. The company has higher reserves (49,145.23 cr) compared to borrowings (0.31 cr), indicating strong financial stability.
  1. The stock is trading at a high valuation with an average P/B ratio of 65.26 and average Dividend Yield of 22.13%.
  2. The stock has a low average ROCE of 12.33%, which may not be favorable.
  3. The company has not shown consistent growth in sales (81.92) and profit (-5.62).

Should I Buy Redington Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Vedanta Ltd:
    1. Net Profit Margin: 9.84%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 24.66% (Industry Average ROCE: 17.38%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 3.37
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 0.51
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✗ Stock P/E: 20.4 (Industry average Stock P/E: 17.1)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✗ Total Debt / Equity: 1.68
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Vedanta Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE