Vedanta Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.
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:
-16%
Stock Price CAGR
10 Years:
7%
5 Years:
28%
3 Years:
17%
1 Year:
120%
Return on Equity
10 Years:
14%
5 Years:
22%
3 Years:
22%
Last Year:
10%
Last Updated: Unknown
Balance Sheet
Last Updated: Unknown
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Equity Capital
87
296
296
296
297
372
372
372
372
372
372
372
Reserves
17,388
72,712
53,579
43,743
60,128
62,940
61,925
54,263
61,906
65,011
39,051
30,350
Borrowings
4,839
80,566
77,752
67,778
71,569
58,159
66,226
59,187
57,669
53,583
80,329
87,706
Other Liabilities
723
60,545
58,654
80,163
64,952
58,896
70,045
66,915
63,549
74,981
69,703
69,690
Total Liabilities
23,037
214,120
190,281
191,980
196,946
180,367
198,568
180,737
183,496
193,947
189,455
188,118
Fixed Assets
4,136
87,205
70,108
61,591
75,631
78,455
86,327
86,127
88,002
89,498
90,483
92,551
CWIP
723
43,128
38,748
38,461
27,557
32,055
24,959
18,585
16,314
15,879
19,529
22,889
Investments
16,059
37,910
39,606
53,386
46,962
28,700
33,065
24,753
16,660
17,291
13,150
11,869
Other Assets
2,119
45,877
41,819
38,542
46,796
41,157
54,217
51,272
62,520
71,279
66,293
60,809
Total Assets
23,037
214,120
190,281
191,980
196,946
180,367
198,568
180,737
183,496
193,947
189,455
188,118
Reserves and Borrowings Chart
Cash Flow
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Cash from Operating ActivityÂ
22
15,601
17,805
20,377
18,083
17,366
23,754
19,300
23,980
34,963
33,065
35,654
Cash from Investing ActivityÂ
-311
-2,890
-4,133
-7,868
2,681
15,480
-10,594
-5,925
-6,678
-2,243
-668
-13,676
Cash from Financing ActivityÂ
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
-51
7,659
-284
1,206
8,339
-6,409
2,918
-2,172
-263
3,817
-1,745
-4,114
Free Cash Flow
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Free Cash Flow
461.00
-61.00
-55.00
-85.00
-50.00
-34.00
-43.00
-39.00
-30.00
-9.00
-46.00
-52.00
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.
Fair Value of Vedanta Ltd as of October 11, 2024 is: ₹287.79
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.
As of October 11, 2024, Vedanta Ltd is Overvalued by 42.21% compared to the current share price ₹498.00
Intrinsic Value of Vedanta Ltd as of October 11, 2024 is: ₹245.16
Calculation basis:
Intrinsic 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 intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.
As of October 11, 2024, Vedanta Ltd is Overvalued by 50.77% compared to the current share price ₹498.00
Last 5 Year EPS CAGR: -14.81%
*Investments are subject to market risks
Strength and Weakness
Strength
Weakness
The stock has a low average Working Capital Days of -63.67, which is a positive sign.
The stock has a low average Cash Conversion Cycle of -25.08, which is a positive sign.
The stock has a low average ROCE of 12.17%, which may not be favorable.
The company has higher borrowings (63,780.25) compared to reserves (51,916.33), which may suggest financial risk.
The company has not shown consistent growth in sales (92.23) and profit (-4.15).
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:
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.
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.
ROE%: 13.79% (Industry Average ROE: 20.19%)
ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
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.
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.
Stock P/E: 31 (Industry average Stock P/E: 42.72)
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.
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 - Qualitative Analysis
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.
INDUSTRY
ADDRESS
CONTACT
Mining/Minerals
1st Floor, 'C' Wing, Unit 103, Mumbai Maharashtra 400093
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
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