Vedanta Ltd. is a global diversified natural resources company. It majorly deals in aluminium, zinc, silver, oil and gas, iron ore, copper, lead, and commercial power.
The market capitalisation of Vedanta Ltd. as on June 19, 2018 is a little over Rs.83,300 crore.
Company’s Wealth and Recent Performance
- In April 2017, Vedanta Limited announced the merger with Cairn India Limited. The company also announced acquisition of Electrosteel Steel Ltd. in June 2018. Vedanta Ltd. declared highest ever interim dividend of Rs.7,881 crore in March 2018.
- The company’s revenue was up 22% at Rs.92,923 crore in FY 2018 while Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) was up 19% at Rs.25,470 crore. The Profit After Tax (PAT) also increased 10% at Rs.8,025 crore and there was a free cash flow of Rs.7,880 crore in FY 2018.
- In Q4 FY 2018, Vedanta Ltd. recorded Rs.27,630 crore in revenues, up 13% quarter over quarter while EBITDA increased 17% quarter over quarter at Rs.7,929 crore. The company’s PAT was up 15% quarter over quarter at Rs.2,420 crore and there was a free cash flow of Rs. 3,240 crore in Q4 FY 2018.
- In FY 2018, the company reported a record annual production of refined zinc-lead and silver at Zinc India. Meanwhile, Aluminum’s annual production was at 1.7mt; with an exit run rate of c.2.0 Mtpa. In 2019, Vedanta is aiming to focus on generating strong cash flows on the strength of higher volumes and improved cost structure in businesses.
- The finance cost of the company for Q4 FY 2018 was at Rs.1,424 crore, 9% higher quarter-over-quarter basis primarily due to capitalisation at Aluminium business.
Vedanta Ltd. Stock Trends in 2018
- On January 1, 2018, the price of the stock was Rs.331 on NSE. It increased by mid January to over Rs.340. By the end of the month the stock price was at Rs.342. The price changed marginally in February.
- In March, Vedanta stock price fell below Rs.290 and crossed the Rs.300 mark in April. By the end of the month, the price of the stock was Rs.295. In the month of May, the stock price continued to fall as it was ordered to close the Sterlite factory. The Vedanta scrip price on May 31, 2018 was Rs.250.
Vedanta Ltd. Stock Trends in 2016 and 2017
- The price of the stock at the beginning of January 2016 was Rs.90. It kept falling throughout the month and closed at Rs.69 by January 31, 2016. In February, the price of the stock increased by just 10 points. However, in March the stock gained strength and crossed the Rs.90 mark by the end of the month. The price of the stock on March 31, 2016 was Rs.94. Vedanta Ltd. posted loss in Q4 but the stock price saw an increase and surpassed Rs.100 in April.
- In May 2016, the Vedanta stock price changed marginally. The scrip saw a rise in the price in June and was at Rs.128 by the end of the month. It continued to perform well in July and increase by 40 points by the end of the month. The price of Vedanta Ltd. stock on July 29, 2016 was Rs.168. The company received import permit from the government for Goa mines in August that helped it crossed the Rs.175 mark.
- In the month of September, Vedanta announced it will double copper capacity by investing Rs.3,000 crore. The stock price was stable in the month following which it crossed the Rs.200 mark in October. In November, the stock price changed by just over 10-15 points. The price of the stock by the end of December 2016 was Rs.218.
- On January 2, 2017, the price of Vedanta Ltd. stock was Rs.216 on NSE. It kept increasing throughout the month and increased by over 45 points by the end of the month. The scrip crossed Rs.270 in February. The month of March was pretty stable for the stock as it recorded marginal change. However, the stock fell in April as Vedanta’s merger with Cairn India became effective. The price of the scrip on April 28, 2017 was Rs.233.
- The price did not change much in May and June. However, things started to change in July the stock gained strength By the end of July 2017, the price of the stock hit 52-week high and was at Rs.272. In the month of August, the scrip crossed Rs.300 mark and continued to perform well by September.
- By the end of October the price of the stock at Rs.340 but it fell by a little over 40 points by the end November. The stock gained some strength in December and ended the month at Rs.334.
Should you invest in Vedanta Ltd.?
- Vedanta Ltd. had a good FY 2017-18 thanks to the merger with Cairn India Ltd. and acquisition of Electrosteel Steel Ltd. The price of the stock has also been pretty stable and has not recorded any dynamic highs and lows.
- From a long-term perspective, buying shares of Vedanta Ltd. looks like a good idea. However, it is strongly advised that you conduct your own research before investing in stocks.
Vedanta Limited is India’s largest and world’s second largest zinc miner. The company’s zinc operations hold 72% market share in India’s Zinc industry, according to the company’s website. Through various subsidiaries, the company’s foothold spans across India, Zambia, Namibia, South Africa, Liberia, Ireland and Australia. Vedanta Ltd. was among the top 3 companies in the Metals & Mining sector in FTI's India Disclosure Index 2017. The Vedanta Group appointed Kuldip Kaura as Interim Chief Executive Officer (CEO), effective September 1, 2017. The company is into custom copper smelting and production of copper rods in India.
History of the Company
Mr. Anil Agarwal acquired Shamsher Sterling Corporation through a family firm in 1979. Sterlite Industries (India) Ltd. made an initial public offering of its shares and convertible debentures in 1988. In 2003, Vedanta Resources became the first Indian Company to be listed on London Stock Exchange. In 2007, Vedanta Ltd.acquired a 51% controlling stake in Sesa Goa Limited, India's largest producer-exporter of iron ore. The company acquired 58.5% controlling stake in Cairn India, the country's largest private sector Oil & Gas companies in 2011.
Management of the Company
Mr. Navin Agarwal - Executive Chairman - Vedanta Limited.
Mr. Agarwal has been an Executive Chairman of Vedanta Limited since April 1, 2014. He has over 25 years of strategic management experience within the Vedanta Group. He plays a key role in the strategic and governance framework of the company.
Mr. Anil Agarwal - Executive Chairman - Vedanta Resources
Mr Agarwal was appointed to the Board in May 2003 and became the Executive Chairman in March 2005. He founded the Group in 1976 and has over three decades of entrepreneurial and mining experience.
Vedanta Ltd.Listings in NSE, BSE, and Indices
The shares of Vedanta Ltd. are listed on the National Stock Exchange of India Limited and the Stock Exchange, Mumbai. The respective codes for the same are as follows:
- BSE: 500295
- NSE: VEDL
- ISIN: INE205A01025
- Sector: Mining and Mineral
The company forms a part of important indices like:
- Nifty 50
- Nifty 100
- Nifty 200
- Nifty 500
- S&P BSE 100
- S&P BSE 200
- S&P BSE 500
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