ScoreWhy is Vedanta Ltd. ?
1
High Management Efficiency with a high ROCE of 32.52%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.95 times
3
Poor long term growth as Operating profit has grown by an annual rate 2.60% of over the last 5 years
4
Flat results in Mar 26
- PAT(Q) At Rs 3,027.81 cr has Fallen at -21.5% (vs previous 4Q average)
- CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 3,739.00 cr
- PBT LESS OI(Q) Lowest at Rs 388.00 cr.
5
With ROCE of 37.5, it has a Very Attractive valuation with a 2.3 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -25.39%, its profits have risen by 10% ; the PEG ratio of the company is 0.9
- At the current price, the company has a high dividend yield of 10.3
6
99.99% of Promoter Shares are Pledged
- In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices
7
Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Vedanta should be less than 10%
- Overall Portfolio exposure to Non - Ferrous Metals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Non - Ferrous Metals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Vedanta for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Vedanta
-25.41%
-0.35
73.29%
Sensex
-8.84%
-0.67
13.10%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.50%
EBIT Growth (5y)
2.60%
EBIT to Interest (avg)
4.34
Debt to EBITDA (avg)
1.81
Net Debt to Equity (avg)
0.20
Sales to Capital Employed (avg)
1.21
Tax Ratio
26.79%
Dividend Payout Ratio
113.48%
Pledged Shares
99.99%
Institutional Holding
27.42%
ROCE (avg)
31.04%
ROE (avg)
24.98%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
17
Price to Book Value
2.61
EV to EBIT
6.23
EV to EBITDA
4.77
EV to Capital Employed
2.34
EV to Sales
1.33
PEG Ratio
0.86
Dividend Yield
10.27%
ROCE (Latest)
37.53%
ROE (Latest)
30.18%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
Bullish
Bullish
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
PAT(Latest six months)
At Rs 8,891.77 cr has Grown at 26.48%
OPERATING PROFIT TO INTEREST(Q)
Highest at 10.26 times
DEBT-EQUITY RATIO(HY)
Lowest at 0.56 times
DEBTORS TURNOVER RATIO(HY)
Highest at 63.39 times
NET SALES(Q)
Highest at Rs 24,609.00 cr
-9What is not working for the Company
PAT(Q)
At Rs 3,027.81 cr has Fallen at -21.5% (vs previous 4Q average
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 3,739.00 cr
PBT LESS OI(Q)
Lowest at Rs 388.00 cr.
NON-OPERATING INCOME(Q)
is 51.86 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Vedanta
Operating Profit to Interest - Quarterly
Highest at 10.26 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales - Quarterly
Highest at Rs 24,609.00 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 24,609.00 cr has Grown at 26.2% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 19,497.75 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 0.56 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio- Half Yearly
Highest at 63.39 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Vedanta
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 388.00 cr has Fallen at -87.8% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 3,191.00 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 3,027.81 cr has Fallen at -21.5% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 3,859.47 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 388.00 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Non Operating Income - Quarterly
is 51.86 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 3,739.00 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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