Strong Momentum Drives New High
Vedanta Ltd. has demonstrated robust momentum in recent sessions, with the stock gaining for two consecutive days and delivering a cumulative return of 0.77% over this period. Despite a minor dip of 0.53% on the day of hitting the new high, the stock outperformed its sector by 4.56%, signalling resilience amid broader sector weakness. The Metal - Non Ferrous sector itself declined by 4.89% on the same day, highlighting Vedanta’s relative strength.
The stock’s current price of Rs.694 marks a significant milestone, nearly doubling from its 52-week low of Rs.362.20, reflecting a 91.7% increase over the past year. This performance notably outpaces the Sensex, which has risen by 7.40% over the same period, and underscores Vedanta’s market-beating trajectory.
Vedanta’s price is trading comfortably above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained upward trend and strong technical positioning.
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Financial Strength and Operational Efficiency Underpin Rally
Vedanta Ltd.’s recent price surge is supported by strong financial metrics and operational performance. The company boasts a high Return on Capital Employed (ROCE) of 31.42%, reflecting efficient capital utilisation. This is complemented by a low Debt to EBITDA ratio of 1.20 times, indicating a solid ability to service debt obligations.
Net sales have grown at an annual rate of 15.00%, while operating profit has expanded at 19.45%, signalling healthy top-line and margin growth. The company has reported positive results for six consecutive quarters, reinforcing consistent profitability.
Operating cash flow for the year reached a peak of Rs.39,562 crore, while the profit after tax (PAT) for the first nine months stood at Rs.9,919.63 crore, growing at 22.92%. The operating profit to interest ratio for the quarter is at a robust 5.40 times, further highlighting financial stability.
Valuation metrics also support the stock’s appeal, with an enterprise value to capital employed ratio of 3.2, suggesting an attractive valuation relative to capital base. The company’s PEG ratio stands at 0.6, indicating that earnings growth is favourably priced into the stock.
At the current price, Vedanta offers a dividend yield of 3.4%, providing an additional income component for shareholders.
Market Position and Sector Influence
Vedanta Ltd. holds a commanding position in the Non-Ferrous Metals sector, with a market capitalisation of Rs.2,64,616 crore, making it the second largest company in the sector behind Hindustan Zinc. It accounts for 40.88% of the sector’s total market cap and generates annual sales of Rs.1,57,262 crore, which is 72.68% of the industry’s total sales.
The company is ranked seventh among all large-cap stocks and 28th across the entire market, placing it among the top 1% of companies rated by MarketsMojo across over 4,000 stocks. Its Mojo Score of 78.0 and a current Mojo Grade of Buy (downgraded from Strong Buy on 13 Jan 2026) reflect a strong fundamental and market standing.
Despite the broader market’s recent volatility, with the Sensex down 4.19% over the past three weeks and trading 4.86% below its 52-week high, Vedanta has maintained a strong upward trajectory. The BSE Mid Cap index, leading the market with a 0.94% gain today, contrasts with the Sensex’s more subdued performance, further highlighting Vedanta’s relative strength within its sector and market segment.
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Risks and Considerations
While Vedanta Ltd. has demonstrated strong performance and financial health, it is important to note that 99.99% of promoter shares are pledged. This high level of pledged shares can exert additional downward pressure on the stock price during market downturns, representing a risk factor for shareholders.
Nonetheless, the company’s consistent earnings growth, strong cash flows, and dominant sector position have contributed to its recent price appreciation and new 52-week high.
Summary of Key Metrics
Vedanta Ltd.’s stock has surged to Rs.694, marking a new 52-week and all-time high, supported by a 49.16% return over the past year. The company’s financial strength is reflected in a ROCE of 31.42%, a low Debt to EBITDA ratio of 1.20, and a high operating cash flow of Rs.39,562 crore. Its dividend yield of 3.4% adds to the stock’s appeal. Despite sector weakness and broader market volatility, Vedanta has maintained strong relative performance, trading above all major moving averages and outperforming the Metal - Non Ferrous sector by over 4.5% on the day of the new high.
Vedanta’s market cap of Rs.2,64,616 crore and sales of Rs.1,57,262 crore underscore its leadership in the sector, while its Mojo Score of 78.0 and Buy grade reflect solid fundamentals and market positioning.
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