Vedanta Ltd. Stock Hits All-Time High at Rs.625.15, Marking a Milestone in Market Performance

Strong Price Momentum and Market Outperformance

Vedanta Ltd. recorded a day gain of 0.97%, outperforming the Sensex which declined by 0.31% on the same day. The stock has demonstrated remarkable resilience and strength across multiple time frames, with a one-month return of 18.51% compared to the Sensex’s negative 0.63%. Over the past three months, Vedanta surged by 31.95%, significantly outpacing the Sensex’s 4.14% gain. The one-year performance is particularly notable, with the stock appreciating 40.50% against the Sensex’s 9.25% rise. Even over longer horizons, Vedanta’s returns have been exceptional, delivering 100.73% over three years, 245.02% over five years, and an impressive 599.55% over the past decade, far exceeding the Sensex’s respective returns of 42.19%, 76.80%, and 235.25%.

Currently, Vedanta trades above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling sustained upward momentum. Despite underperforming its sector by 0.74% on the day, the stock’s overall trajectory remains strongly positive.

Financial Strength and Operational Excellence

Vedanta’s financial metrics highlight its operational efficiency and growth. The company boasts a high Return on Capital Employed (ROCE) of 31.42%, reflecting effective capital utilisation. Its ability to service debt is robust, with a low Debt to EBITDA ratio of 1.20 times, indicating manageable leverage levels.

Net sales have grown at an annual rate of 15.00%, while operating profit has expanded at 19.45% annually, underscoring 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 record Rs.39,562 crore, while 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 coverage ratio is at a high of 5.40 times, further demonstrating financial stability.

Valuation and Dividend Appeal

Vedanta’s valuation metrics remain attractive. The company’s Enterprise Value to Capital Employed ratio stands at a modest 2.9, indicating a favourable valuation relative to its capital base. The stock is trading at a discount compared to its peers’ average historical valuations, enhancing its appeal from a value perspective.

Additionally, Vedanta offers a high dividend yield of 3.74% at the current price, providing income alongside capital appreciation. This dividend yield is notable within the Non - Ferrous Metals sector, reflecting the company’s commitment to shareholder returns.

Market Position and Industry Standing

With a market capitalisation of Rs.2,40,723 crore, Vedanta is the second largest company in its sector, trailing only Hindustan Zinc. It accounts for 40.21% of the entire Non - Ferrous Metals sector by market cap. The company’s annual sales of Rs.1,57,262 crore represent 73.45% of the industry’s total, underscoring its dominant market presence.

Vedanta is also highly rated by MarketsMojo, with a Mojo Score of 81.0 and a Mojo Grade upgraded to Strong Buy from Buy as of 1 December 2025. It ranks third among all Large Cap stocks and sixteenth across the entire market universe of over 4,000 stocks, placing it in the top 1% of companies rated by the platform.

Long-Term Growth and Return Profile

Vedanta’s long-term growth story is reflected in its consistent outperformance of benchmark indices. Over the past five years, the stock has delivered a staggering 245.02% return, more than three times the Sensex’s 76.80% gain. Its three-year return of 100.73% also significantly surpasses the Sensex’s 42.19% rise.

The company’s profits have grown in tandem with its stock price, with a 33.6% increase in profits over the last year complementing the 40.50% return generated by the stock. This alignment of earnings growth and share price appreciation is further highlighted by a low PEG ratio of 0.5, indicating that the stock’s price growth is supported by strong earnings expansion.

Risks to Consider

One notable risk factor is the high level of promoter share pledge, with 99.99% of promoter shares pledged. This concentration could exert additional downward pressure on the stock price during market downturns, warranting attention from market participants.

Summary

Vedanta Ltd.’s ascent to a new all-time high of Rs.625.15 marks a significant milestone in its market journey. Supported by strong financial metrics, robust growth, attractive valuation, and a dominant sector position, the company has demonstrated sustained market-beating performance. While the high promoter pledge ratio remains a factor to monitor, the overall fundamentals and market standing of Vedanta continue to reflect strength and resilience.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Today