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Last Updated on: 13 June, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 500295 | NSE: VEDL

Fundamental Analysis of Vedanta Ltd

Basic Stock Data

Last Updated: June 12, 2024, 10:15 pm

Market Cap 1,65,081 Cr.
Current Price 444
High / Low507/208
Stock P/E45.2
Book Value 82.6
Dividend Yield6.66 %
ROCE23.4 %
ROE10.4 %
Face Value 1.00
PEG Ratio0.46

Competitors of Vedanta Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Coal India Ltd 3,02,528 Cr. 491527/2238.12 1344.91 %65.1 %53.4 % 10.0
NMDC Ltd 76,826 Cr. 262286/10413.3 87.52.52 %31.9 %23.9 % 1.00
Deccan Gold Mines Ltd 1,583 Cr. 107159/45.0 14.40.00 %10.7 %35.2 % 1.00
MOIL Ltd 10,760 Cr. 529556/15936.8 1210.69 %16.5 %12.5 % 10.0
20 Microns Ltd 636 Cr. 180201/90.011.1 1000.69 %21.6 %17.7 % 5.00
Industry Average78,466.60 Cr313.8013.8691.381.76%29.16%28.54%5.40

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales28,20628,41230,40134,09739,82238,62236,65434,10237,93033,73338,94535,54135,509
Expenses19,16918,54119,98723,28726,18928,42528,95527,03528,47127,31327,46627,01026,741
Operating Profit9,0379,87110,41410,81013,63310,1977,6997,0679,4596,42011,4798,5318,768
OPM %32%35%34%32%34%26%21%21%25%19%29%24%25%
Other Income866055764722757339311,619-6312,3261,863779383
Interest1,3251,1821,0661,2161,3331,2061,6421,5721,8052,1102,5232,4172,415
Depreciation2,0552,1242,1182,2742,3792,4642,6242,7202,7652,5502,6422,7882,743
Profit before tax5,7437,1707,8067,79210,1967,2604,3644,3944,2584,0868,1774,1053,993
Tax %-33%26%26%31%29%23%38%30%26%19%111%30%43%
Net Profit7,6285,2835,8125,3547,2615,5932,6873,0913,1323,308-9152,8682,275
EPS in Rs17.3011.3612.4211.2015.6011.894.866.635.067.10-4.805.423.68

Last Updated: June 9, 2024, 7:44 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:20 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales2,74966,15273,71064,26272,22591,86692,04884,44788,021132,732147,308143,727
Expenses2,28346,55751,59582,74150,84966,98968,87763,70460,70387,908112,877108,529
Operating Profit46519,59522,114-18,47921,37624,87723,17120,74327,31844,82434,43135,198
OPM %17%30%30%-29%30%27%25%25%31%34%23%24%
Other Income331,874-19,2224,2904,4236,0874,270-14,9322,7431,8322,6255,353
Interest4755,0945,6595,7785,8555,1125,6894,9775,2104,7976,2259,465
Depreciation1976,8827,1598,5726,2926,2838,1929,0937,6388,89510,55510,723
Profit before tax-1749,493-9,925-28,54013,65219,56913,560-8,25917,21332,96420,27620,363
Tax %25%-9%-15%37%17%30%28%43%13%28%28%63%
Net Profit2,28011,421-11,369-17,86211,31613,6929,698-4,74415,03223,71014,5037,539
EPS in Rs26.2421.25-52.77-41.3923.4727.8219.01-17.9331.2150.5828.4511.40
Dividend Payout %0%15%-8%-8%83%76%99%-22%30%89%357%259%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)400.92%-199.54%-57.11%163.35%21.00%-29.17%-148.92%416.86%57.73%-38.83%-48.02%
Change in YoY Net Profit Growth (%)0.00%-600.47%142.43%220.46%-142.36%-50.17%-119.75%565.78%-359.13%-96.56%-9.19%

Growth

Compounded Sales Growth
10 Years:8%
5 Years:9%
3 Years:18%
TTM:-2%
Compounded Profit Growth
10 Years:-5%
5 Years:-12%
3 Years:-33%
TTM:-66%
Stock Price CAGR
10 Years:5%
5 Years:22%
3 Years:19%
1 Year:66%
Return on Equity
10 Years:14%
5 Years:22%
3 Years:22%
Last Year:10%

Last Updated: June 8, 2024, 5:03 pm

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

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 2215,60117,80520,37718,08317,36623,75419,30023,98034,96333,06535,654
Cash from Investing Activity -311-2,890-4,133-7,8682,68115,480-10,594-5,925-6,678-2,243-668-13,686
Cash from Financing Activity 238-5,052-13,956-11,303-12,425-39,255-10,242-15,547-17,565-28,903-34,142-26,092
Net Cash Flow-517,659-2841,2068,339-6,4092,918-2,172-2633,817-1,745-4,124

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow465.0019.0022.00-18.0021.0024.0023.0018.0025.0044.0034.0035.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

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%

Financial Efficiency Indicators Chart

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

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Arbitrage Opportunities Fund11,221,7001.15307.313,095,8002024-06-11262.48%
Kotak Equity Arbitrage Fund - Regular Plan10,207,4000.78279.533,095,8002024-06-11229.72%
Aditya Birla Sun Life Arbitrage Fund6,732,1001.88184.363,095,8002024-06-11117.46%
Tata Arbitrage Fund4,266,5001.21116.843,095,8002024-06-1137.82%
Nippon India Arbitrage Fund3,937,6000.82107.833,095,8002024-06-1127.19%
Nippon India ETF Nifty Next 50 Junior BeES3,386,3552.292.743,095,8002024-06-119.39%
Axis Arbitrage Fund3,275,2002.3589.693,095,8002024-06-115.79%
ICICI Prudential Nifty Next 50 Index Fund3,120,9952.285.473,095,8002024-06-110.81%
ICICI Prudential Equity - Arbitrage Fund3,095,8000.5284.783,095,8002024-06-110%
ICICI Prudential Bluechip Fund3,029,7060.1782.973,095,8002024-06-11-2.13%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)11.4228.5050.7331.32-18.00
Diluted EPS (Rs.)11.3328.5050.7331.13-18.00
Cash EPS (Rs.)49.0967.3787.6560.9411.69
Book Value[Excl.RevalReserv]/Share (Rs.)113.09132.87222.32208.11192.87
Book Value[Incl.RevalReserv]/Share (Rs.)113.09132.87222.32208.11192.87
Revenue From Operations / Share (Rs.)386.36395.99356.81236.62227.01
PBDIT / Share (Rs.)101.47100.20127.4882.6362.36
PBIT / Share (Rs.)72.6571.82103.5762.1037.91
PBT / Share (Rs.)54.7454.5188.6146.27-22.20
Net Profit / Share (Rs.)20.2638.9963.7340.41-12.75
NP After MI And SOA / Share (Rs.)11.4028.4250.5431.19-17.91
PBDIT Margin (%)26.2625.3035.7234.9227.46
PBIT Margin (%)18.8018.1329.0226.2416.70
PBT Margin (%)14.1613.7624.8319.55-9.78
Net Profit Margin (%)5.249.8417.8617.07-5.61
NP After MI And SOA Margin (%)2.947.1714.1613.18-7.89
Return on Networth / Equity (%)13.7926.8228.7518.62-12.19
Return on Capital Employeed (%)24.0924.6628.9918.2511.72
Return On Assets (%)2.225.389.466.24-3.62
Long Term Debt / Equity (X)1.651.100.550.600.67
Total Debt / Equity (X)2.341.680.810.791.08
Asset Turnover Ratio (%)0.740.380.370.230.21
Current Ratio (X)0.660.681.040.950.90
Quick Ratio (X)0.490.510.820.780.72
Inventory Turnover Ratio (X)3.152.452.571.661.32
Dividend Payout Ratio (NP) (%)0.00355.3288.7130.33-25.45
Dividend Payout Ratio (CP) (%)0.00177.8260.2218.2969.82
Earning Retention Ratio (%)0.00-255.3211.2969.67125.45
Cash Earning Retention Ratio (%)0.00-77.8239.7881.7130.18
Interest Coverage Ratio (X)3.995.999.895.904.66
Interest Coverage Ratio (Post Tax) (X)1.503.376.104.023.54
Enterprise Value (Cr.)179831.80169120.40204921.40133226.8087442.00
EV / Net Operating Revenue (X)1.251.151.541.511.04
EV / EBITDA (X)4.764.544.324.333.77
MarketCap / Net Operating Revenue (X)0.700.691.130.960.28
Retention Ratios (%)0.00-255.3211.2869.66125.45
Price / BV (X)3.292.592.301.370.44
Price / Net Operating Revenue (X)0.700.691.130.960.28
EarningsYield0.040.100.120.13-0.27

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 414.15

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Overvalued: 6.72% compared to the current price 444

Intrinsic Value: 819.46

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 84.56% compared to the current price ₹444

Last 5 Year EPS CAGR: 97.87%

*Investments are subject to market risks

Strength and Weakness

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 (51,916.33 cr) compared to borrowings (0.33 cr), indicating strong financial stability.
  1. The stock has a low average ROCE of 12.33%, which may not be favorable.
  2. The company has not shown consistent growth in sales (87.83) and profit (-6.33).

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Vedanta Ltd:
    1. Net Profit Margin: 5.24%
      • 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: 24.09% (Industry Average ROCE: 29.16%)
      • 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. ROE%: 13.79% (Industry Average ROE: 28.54%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.50
      • 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.
    5. Quick Ratio: 0.49
      • 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.
    6. ✗ Stock P/E: 45.2 (Industry average Stock P/E: 13.86)
      • 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.
    7. ✗ Total Debt / Equity: 2.34
      • 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 is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

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

FAQ

What is the latest fair value of Vedanta Ltd?

The latest fair value of Vedanta Ltd is ₹414.15.

What is the Market Cap of Vedanta Ltd?

The Market Cap of Vedanta Ltd is 1,65,081 Cr..

What is the current Stock Price of Vedanta Ltd as on 13 June 2024?

The current stock price of Vedanta Ltd as on 13 June 2024 is ₹444.

What is the High / Low of Vedanta Ltd stocks in FY 2024?

In FY 2024, the High / Low of Vedanta Ltd stocks is 507/208.

What is the Stock P/E of Vedanta Ltd?

The Stock P/E of Vedanta Ltd is 45.2.

What is the Book Value of Vedanta Ltd?

The Book Value of Vedanta Ltd is 82.6.

What is the Dividend Yield of Vedanta Ltd?

The Dividend Yield of Vedanta Ltd is 6.66 %.

What is the ROCE of Vedanta Ltd?

The ROCE of Vedanta Ltd is 23.4 %.

What is the ROE of Vedanta Ltd?

The ROE of Vedanta Ltd is 10.4 %.

What is the Face Value of Vedanta Ltd?

The Face Value of Vedanta Ltd is 1.00.

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