Vedanta Limited (VEDL) AI Stock Analysis

• Market Cap: ₹1.99T
• Dividend Yield: 9.57%
• Average Volume (3M): 653.91K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 1.52
• Revenue Growth: 8.87%
• EPS Growth: 2.25%
• Country: IN
• Employees: 17,526
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 4.56
• Shares Outstanding: 3,910,388,000
• 10 Day Avg. Volume: 582,681
• 30 Day Avg. Volume: 653,909
• PEG Ratio: 0.05
• Price to Book (P/B): 4.30
• Price to Sales (P/S): 1.17
• P/FCF Ratio: 7.86
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹531.50
• Price Target Upside: -1.25% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ₹589.00 ▲(9.43% Upside)

Vedanta Limited's strong financial performance and positive technical indicators are the primary drivers of its stock score. While the company's profitability and cash flow generation are commendable, the increased leverage and potential overbought technical conditions warrant caution. The fair valuation and high dividend yield add to the stock's attractiveness, but investors should be mindful of potential growth concerns.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, ensuring long-term sustainability and competitive advantage.

Cash Flow Generation

Robust cash flow generation supports investment and debt servicing, providing financial flexibility and stability for future growth.

Profitability

Improved profitability through cost management enhances long-term financial health, allowing for reinvestment and shareholder returns.

Negative Factors

Increased Leverage

Increased leverage can pose risks to financial stability, potentially impacting the company's ability to weather economic downturns.

Fluctuating Cash Flows

Variability in cash flows can lead to uncertainty in financial planning and may affect the company's ability to fund long-term projects consistently.

Debt Reliance

While currently manageable, reliance on debt financing could limit financial flexibility and increase vulnerability to interest rate changes.

Vedanta Limited Business Overview & Revenue Model

Company Description

Vedanta Limited (VEDL) is a diversified natural resources company headquartered in India, primarily engaged in the exploration, extraction, and processing of minerals and resources. The company operates in several sectors, including zinc, lead, silver, copper, iron ore, aluminum, and oil and gas. Vedanta is known for its extensive mining operations, as well as for its production of value-added metals and minerals, making it a significant player in the global commodities market.

How the Company Makes Money

Vedanta Limited generates revenue through multiple key streams, primarily from the sale of minerals and metals extracted from its mining operations. The company produces zinc, lead, silver, copper, and aluminum, with a significant portion of its revenue coming from the sale of these products in domestic and international markets. Additionally, Vedanta has a robust oil and gas segment, contributing to its earnings through the exploration and production of hydrocarbons. The company's revenue model is supported by long-term contracts and strategic partnerships with various industrial consumers, which help stabilize its cash flows. Fluctuations in global commodity prices, operational efficiencies, and cost management strategies also play a critical role in determining the company's profitability.

Vedanta Limited Financial Statement Overview

Summary

Vedanta Limited demonstrates strong financial performance with robust revenue growth, profitability, and cash flow generation. However, increased leverage and fluctuating cash flow patterns require careful monitoring.

Income Statement

Vedanta Limited has shown strong revenue growth and profitability in recent years. The Gross Profit Margin has been robust with a slight upward trend, and Net Profit Margin has improved significantly, reflecting effective cost management. Revenue growth has been positive, and EBIT and EBITDA margins indicate strong operational performance.

Balance Sheet

The balance sheet reveals a stable financial position with a reasonable Debt-to-Equity Ratio reflecting manageable leverage. Although increasing, the company maintains a healthy Return on Equity, suggesting efficient use of shareholder funds. The Equity Ratio has been declining, indicating a higher reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Cash flow analysis highlights strong operational cash flow generation relative to net income, indicating robust cash management. Free Cash Flow has grown consistently, supporting investment and debt servicing. However, fluctuations in investing and financing cash flows suggest variability in capital allocation strategies.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.54T	1.51T	1.42T	1.46T	1.32T	871.66B
Gross Profit	750.23B	752.54B	701.62B	669.65B	719.34B	471.31B
EBITDA	422.70B	423.11B	356.27B	351.66B	451.42B	274.07B
Net Income	145.67B	149.88B	42.39B	105.74B	188.02B	116.02B
Balance Sheet
Total Assets	0.00	2.03T	1.91T	1.95T	1.98T	1.86T
Cash, Cash Equivalents and Short-Term Investments	187.62B	210.54B	174.23B	185.15B	324.95B	330.31B
Total Debt	0.00	751.86B	727.59B	666.28B	535.83B	575.63B
Total Liabilities	-537.53B	1.50T	1.49T	1.46T	1.16T	1.04T
Stockholders Equity	537.53B	412.12B	307.22B	394.23B	653.83B	622.78B
Cash Flow
Free Cash Flow	0.00	225.57B	189.02B	192.78B	243.33B	170.94B
Operating Cash Flow	0.00	395.62B	356.54B	330.65B	349.63B	239.80B
Investing Cash Flow	0.00	-191.90B	-136.86B	-6.93B	-22.53B	-67.50B
Financing Cash Flow	0.00	-192.23B	-260.92B	-341.42B	-289.03B	-175.65B

Vedanta Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 538.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VEDL, the sentiment is Positive. The current price of 538.25 is above the 20-day moving average (MA) of 517.55, above the 50-day MA of 494.58, and above the 200-day MA of 438.46, indicating a bullish trend. The MACD of 9.47 indicates Negative momentum. The RSI at 62.98 is Neutral, neither overbought nor oversold. The STOCH value of 89.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:VEDL.

Vedanta Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HINDZINC	79 Outperform	₹2.00T	18.93	―	5.80%	8.90%	20.90%
VEDL	75 Outperform	₹1.99T	16.51	―	9.57%	8.87%	2.25%
HINDALCO	75 Outperform	₹1.81T	10.08	―	0.62%	13.19%	42.27%
TATASTEEL	71 Outperform	₹2.24T	49.26	―	2.15%	-0.42%	132.70%
JSWSTEEL	66 Neutral	₹2.89T	47.82	―	0.24%	2.14%	20.37%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JINDALSTEL	57 Neutral	₹1.10T	39.92	―	0.19%	-2.21%	-46.30%

Vedanta Limited Corporate Events

Vedanta Limited Releases Q2 and Half-Year Financial Results

Vedanta Limited has published its unaudited financial results for the second quarter and half-year ending September 30, 2025. The results were announced through newspaper advertisements in Financial Express and Loksatta, and are also available on the company’s website. This disclosure is part of the company’s compliance with SEBI regulations, highlighting its commitment to transparency and regular communication with stakeholders.

Vedanta Limited Announces Stock Option Vesting and Granting to Boost Employee Engagement

Vedanta Limited has announced the vesting and granting of stock options under its Employee Stock Option Scheme. The Nomination and Remuneration Committee approved the vesting of 46,91,300 options from the 2022 grants and the grant of 97,80,400 new stock options. These options are performance-based and aim to incentivize eligible employees, including key managerial personnel and senior management, aligning their interests with the company’s long-term goals. This move is expected to enhance employee engagement and retention, potentially impacting the company’s operational efficiency and market positioning positively.

Vedanta Limited Announces NCLT Directive on Subsidiary Restructuring

Vedanta Limited has announced an update regarding the Scheme of Arrangement involving its subsidiaries, including Talwandi Sabo Power Limited, Vedanta Aluminium Metal Limited, Malco Energy Limited, and Vedanta Iron and Steel Limited. The National Company Law Tribunal (NCLT) has directed the dispensation of the equity shareholders’ meeting for Talwandi Sabo Power Limited and mandated the convening of meetings for its secured and unsecured creditors within 90 days. This development is part of the ongoing restructuring efforts to streamline operations and improve financial stability, potentially impacting stakeholders by altering the company’s corporate structure and financial arrangements.

Vedanta Faces Setback as Cambay Basin Oil Block Extension Denied

Vedanta Limited has confirmed that the Ministry of Petroleum & Natural Gas has denied their application for an extension of the Production Sharing Contract for the Cambay Basin oil block CB-OS/2. Although this decision does not meet the threshold of materiality under SEBI regulations, Vedanta is actively engaging with authorities to explore options for resolution. The company remains committed to complying with SEBI Listing Regulations and keeping stakeholders informed of any material developments.