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Vedanta Ltd logo

Vedanta Ltd

NSE: VEDL BSE: 500295

₹333.75

(1.16%)

Tue, 26 May 2026, 04:14 pm

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Vedanta Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
  • Vedanta's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Vedanta's dividend is above the markets top 25% of dividend payers in India (3.08%).
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Cons

  • The company is paying a dividend however it is incurring a loss.
  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

future

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Pros

  • Vedanta's earnings are expected to grow significantly at over 20% yearly.
  • Vedanta's earnings growth is expected to exceed the India market average.
  • Vedanta's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Vedanta is expected to become profitable in 1 year.
  • Vedanta is expected to become profitable in 3 years time.
  • Vedanta is expected to become profitable in 2 years.
  • An improvement in Vedanta's performance (ROE) is expected over the next 3 years.
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Cons

  • Cash flow for Vedanta is expected to increase but not above the 50% threshold in 2 years time.
  • Vedanta is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Performance (ROE) is not expected to exceed the current IN Metals and Mining industry average.
  • Vedanta's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Vedanta's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).
  • Vedanta's revenue growth is positive but not above the India market average.

health

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Pros

  • Vedanta has been profitable on average in the past, therefore cash runway is not a concern.
  • Vedanta has been profitable on average in the past, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (38.8%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 1.2x debt.
  • Vedanta's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (87% vs 69.4% today).
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Cons

  • Vedanta's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Vedanta is making a loss, therefore interest payments are not well covered by earnings.
  • Vedanta's level of debt (69.4%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • Sunil's remuneration is lower than average for companies of similar size in India.
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Cons

  • The average tenure for the Vedanta board of directors is less than 3 years, this suggests a new board.
  • Sunil's compensation has increased whilst company is loss making.
  • The average tenure for the Vedanta management team is less than 2 years, this suggests a new team.

misc

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Pros

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    Cons

    • Vedanta has significant price volatility in the past 3 months.

    past

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    Pros

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      Cons

      • Unable to compare Vedanta's 1-year earnings growth to the 5-year average as it is not currently profitable.
      • Vedanta does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
      • It is difficult to establish if Vedanta has efficiently used its assets last year compared to the IN Metals and Mining industry average (Return on Assets) as it is loss-making.
      • It is difficult to establish if Vedanta improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
      • It is difficult to establish if Vedanta has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
      • Unable to compare Vedanta's 1-year growth to the IN Metals and Mining industry average as it is not currently profitable.

      value

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      Pros

      • NSEI:VEDL is up 11.7% outperforming the Metals and Mining industry which returned 7.5% over the past month.
      • NSEI:VEDL is up 11.7% outperforming the market in India which returned 8% over the past month.
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      Cons

      • Vedanta's share price is below the future cash flow value, but not at a moderate discount (< 20%).
      • Vedanta's share price is below the future cash flow value, but not at a substantial discount (< 40%).
      • Vedanta is overvalued based on assets compared to the IN Metals and Mining industry average.
      • Vedanta is loss making, we can't compare its value to the IN Metals and Mining industry average.
      • Vedanta is loss making, we can't compare the value of its earnings to the India market.
      • VEDL underperformed the Metals and Mining industry which returned -28.6% over the past year.
      • VEDL underperformed the Market in India which returned -14.5% over the past year.