Strong Rally Drives New High
The stock of Vedanta Ltd. touched an intraday high of Rs.699, representing a 3.02% increase on the day and a 2.37% gain compared to the previous close. This marks a significant milestone as the company’s shares have been on an upward trajectory, gaining for three consecutive sessions and delivering a cumulative return of 3.75% during this period.
Despite underperforming its sector by 2.23% on the day, Vedanta’s stock continues to trade above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained positive momentum. The Non-Ferrous Metals sector itself has gained 5.44% recently, reflecting broader strength in the industry.
Market Context and Comparative Performance
While the broader market, represented by the Sensex, opened flat and is currently trading marginally down by 0.06% at 82,254.34 points, Vedanta’s stock has outpaced the benchmark significantly over the past year. The Sensex remains 4.75% below its own 52-week high of 86,159.02, whereas Vedanta has surged 55.60% in the same timeframe, far exceeding the Sensex’s 7.49% gain.
Vedanta’s 52-week low stands at Rs.362.20, highlighting the remarkable recovery and growth the stock has experienced over the last twelve months.
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Financial Strength and Operational Metrics
Vedanta Ltd. demonstrates strong financial health, reflected in its high Return on Capital Employed (ROCE) of 31.42%, indicating efficient use of capital to generate profits. The company’s ability to service debt remains robust, with a low Debt to EBITDA ratio of 1.20 times, underscoring manageable leverage levels.
Net sales have grown at an annual rate of 15.00%, while operating profit has expanded at 19.45%, signalling healthy long-term growth. The company has reported positive results for six consecutive quarters, reinforcing its consistent performance.
Operating cash flow for the year reached a peak of Rs.39,562 crore, while profit after tax (PAT) for the first nine months stood at Rs.9,919.63 crore, reflecting a growth rate of 22.92%. The operating profit to interest ratio for the quarter is at a high of 5.40 times, further highlighting financial resilience.
Valuation and Dividend Yield
Vedanta’s valuation remains attractive with an enterprise value to capital employed ratio of 3.2, trading at a discount relative to its peers’ historical averages. The company’s PEG ratio stands at 0.6, indicating that its price growth is supported by earnings expansion.
At the current price level, Vedanta offers a dividend yield of 3.39%, providing a steady income stream alongside capital appreciation.
Market Position and Industry Standing
With a market capitalisation of Rs.2,65,320 crore, Vedanta is the second-largest company in the Non-Ferrous Metals sector, trailing only Hindustan Zinc. It accounts for 41.94% of the sector’s total market cap and generates annual sales of Rs.157,262 crore, which is 72.68% of the industry’s total revenue.
The company is highly rated by MarketsMojo, with a Mojo Score of 78.0 and a current Mojo Grade of Buy, recently adjusted from Strong Buy on 13 January 2026. It ranks seventh among all large-cap stocks and 29th across the entire market universe of over 4,000 stocks, placing it in the top 1% of companies rated by the platform.
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Performance Trends and Market Leadership
Vedanta’s stock has consistently outperformed the broader market indices and sector peers over multiple time horizons. It has delivered market-beating returns not only over the past year but also over the last three years and three months, outperforming the BSE500 index in each period.
The company’s sustained growth and profitability have contributed to its strong price momentum, culminating in the recent 52-week high. This performance is underpinned by solid fundamentals, efficient capital management, and a dominant position within its sector.
Risks and Considerations
One notable risk factor is the high level of promoter share pledging, with 99.99% of promoter shares pledged. This situation could exert additional downward pressure on the stock price during market downturns, warranting attention from market participants.
Summary
Vedanta Ltd.’s achievement of a new 52-week high at Rs.699 reflects a combination of strong financial metrics, sector leadership, and sustained price momentum. The stock’s performance over the past year has been remarkable, significantly outpacing the Sensex and its sector peers. Supported by robust earnings growth, attractive valuation, and a healthy dividend yield, Vedanta continues to demonstrate resilience and strength in the Non-Ferrous Metals industry.
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