Stock Price Performance and Market Position
Vedanta’s stock recently touched an intraday high of ₹542.75, closing just 0.1% shy of its 52-week peak of ₹543. This achievement comes after a four-day consecutive gain period, during which the stock delivered a cumulative return of 5.99%. On the day of this record, Vedanta’s share price rose by 2.28%, outperforming the Sensex’s 0.51% gain, although it underperformed its sector’s 4.94% advance.
The stock is trading above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a strong upward momentum. Vedanta’s market capitalisation stands at ₹2,06,957 crores, making it the second largest company in the Non-Ferrous Metals sector, representing 41.52% of the sector’s total market cap. Its annual sales of ₹1,57,262 crores account for nearly three-quarters (73.45%) of the industry’s total sales, highlighting its dominant market share.
Long-Term Returns and Comparative Analysis
Vedanta’s long-term performance has been notable. Over the past decade, the stock has generated returns of 548.65%, significantly outpacing the Sensex’s 240.39% over the same period. The five-year return of 269.49% also surpasses the Sensex’s 84.92%, while the three-year return of 75.26% is well above the Sensex’s 37.21%. Even in the shorter term, Vedanta has delivered a year-to-date return of 21.83%, compared to the Sensex’s 9.10%, and a three-month return of 20.04%, outperforming the Sensex’s 4.08%.
These figures illustrate Vedanta’s consistent ability to generate returns that exceed broader market benchmarks, reinforcing its position as a key player in the sector.
Strong fundamentals, solid momentum, fair price – This Large Cap from the NBFC sector checks every box for our Top 1%. This should definitely be on your radar!
- - Complete fundamentals package
- - Technical momentum confirmed
- - Reasonable valuation entry
Financial Strength and Operational Highlights
Vedanta’s financial metrics demonstrate a strong operational foundation. The company’s Return on Capital Employed (ROCE) stands at an impressive 31.42%, indicating efficient use of capital in generating profits. Its Debt to EBITDA ratio is 1.20 times, reflecting a manageable level of debt relative to earnings before interest, taxes, depreciation, and amortisation.
Net sales have grown at an annual rate of 15.00%, while operating profit has expanded at 19.45% annually, signalling healthy growth in core business activities. The company has reported positive results for six consecutive quarters, underscoring consistent profitability.
Operating cash flow for the year reached a peak of ₹39,562 crores, while profit after tax for the first nine months stood at ₹9,919.63 crores, reflecting a growth rate of 22.92%. The operating profit to interest coverage ratio is at a high of 5.40 times, indicating strong ability to service interest obligations.
Valuation and Dividend Yield
Vedanta’s valuation metrics suggest an attractive profile. The enterprise value to capital employed ratio is 2.6, which is lower than the average historical valuations of its peers, indicating a relative discount. The company’s price-to-earnings-to-growth (PEG) ratio is 0.5, reflecting the relationship between its price, earnings growth, and valuation.
At the current price, Vedanta offers a dividend yield of approximately 5.95%, providing a steady income stream to shareholders. This yield is considered high within the sector, adding to the stock’s appeal from an income perspective.
Sector and Market Context
Vedanta operates within the Non-Ferrous Metals industry, a sector that has experienced a 4.94% gain recently. Despite the sector’s positive movement, Vedanta’s stock has shown resilience and sustained gains over multiple time frames, including outperforming the BSE500 index over the last three years, one year, and three months.
The company’s market cap grade is noted as 1, reflecting its significant size and influence within the sector. It ranks first among large-cap companies in the sector and fifteenth across the entire market, highlighting its prominence.
Get the full story on Vedanta .! Our detailed research dives into fundamentals, sector comparison, technical analysis, and valuations for this Non - Ferrous Metals large-cap. Make informed decisions!
- - Full research story
- - Sector comparison done
- - Informed decision support
Risks and Considerations
One notable risk factor is the high percentage of promoter shares pledged, which stands at 99.99%. In market downturns, this could exert additional downward pressure on the stock price. This aspect warrants attention when analysing the stock’s risk profile.
Summary of Vedanta’s Market Journey
Vedanta Ltd.’s journey to its all-time high has been characterised by strong financial discipline, consistent growth in sales and profits, and a commanding position within the Non-Ferrous Metals sector. The company’s ability to maintain positive quarterly results over an extended period, combined with attractive valuation metrics and a high dividend yield, has contributed to this milestone.
Its market capitalisation and sales figures underscore its leadership in the sector, while its long-term returns demonstrate sustained value creation for shareholders. The stock’s current trading levels above key moving averages further reinforce the strength of its recent performance.
While the high promoter share pledge presents a risk factor, the company’s robust cash flows and interest coverage ratios provide a cushion against financial strain. Overall, Vedanta’s all-time high reflects a culmination of solid fundamentals and steady market performance.
Only for Rs. 14,999 - Get Access to 2 Years + 6 Months of All Premium Features on MarketsMojo. As low as ₹500/month! Claim 83% OFF →
