Vedanta Limited, a billionaire Anil Agarwal-backed metal giant, witnessed a huge buying sentiment of 5% on BSE during the February 4th trading session, closing the gap towards a 52-week high of Rs 527 apiece. In a year, Vedanta stock has surged by over 13% outperforming peers like Tata Steel which dipped by 6% during the same period. Vedanta stock is trending after its Q3 results under which the company posted the highest ever third quarter EBITDA, while double-digit growth was seen in PAT. The next key focus area in Vedanta is its demerger into six entities.
Vedanta Share Price:
After market hours, Vedanta’s share price on BSE stood at Rs 437.30 apiece, up 3.71% on February 4. The market cap stood at Rs 1,71,001.27 crore. During Tuesday’s trading hours, Vedanta shares climbed as much as 5% to hit an intraday high of Rs 442.95 apiece. The stock’s 52-week high and low are Rs 527 apiece and Rs 249.75 apiece, respectively.
The stock is currently Rs 89.7 away from its 52-week high.
Vedanta Q3 Results:
In Q3FY25, the company recorded consolidated revenue of Rs 38,526 crore, up 4% QoQ and 10% YoY, while consolidated EBITDA stood the highest ever in a third quarter to Rs 11,284 crore, up 30% YoY and 9% QoQ. EBITDA margins came in at 34% up 517 bps YoY. Profit after tax (before exceptional) at Rs 4,876 crore, up 70% YoY and 9% QoQ.
Vedanta revealed that VRL, VRL’s parent company, successfully restructured $3.1 billion through bond issuances in the last four months, resulting in longer maturities of up to 8 years, better covenant terms, and a significant reduction in the average coupon rate by 250 bps.
By end of Q3FY25, Vedanta’s net debt stood at Rs 57,358 crores with Net debt/ EBITDA at 1.4x. While the metal giant’s Cash and Cash Equivalent improved by 66% YoY on the back of robust Free cash flow (precapex) of Rs 6,766 crore.
Vedanta Demerger:
Among much-awaited developments in Vedanta is its demerger into six businesses, aka a 1:5 ratio. Vedanta has received approval to demerger metals, power, aluminium, and oil and gas businesses to unlock potential value. After the exercise, six independent verticals – Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals and Vedanta Limited – will be created.
Under the demerger agreement, every eligible shareholder of Vedanta will get one share each in the five newly listed companies, against their 1 existing share in Vedanta.
As per ICICI Direct blog, Vedanta Limited Chairman, Anil Agarwal, recently told media that the demerger process is expected to conclude in the first quarter of next year. He added, “We will have a very good dividend policy. Share price will do very well according to me,” he added. The Vedanta Chairman went on to add that the demand for businesses under these companies remains strong.
Vedanta Dividend:
Recently, the company delivered a fourth interim dividend of Rs 8.5 per share for FY25, which amounted to Rs 3,324 Crore. Last year, Vedanta paid about four dividends for FY25.
Prior to the fourth dividend, Vedanta delivered an Rs 20 per share interim dividend after turning ex-date in September 2024. The second and first interim dividends for FY25 were Rs 4 per share and Rs 11 per share respectively.
In FY24, Vedanta delivered a 2950% dividend worth Rs 29.5 per share.
Vedanta Share Recommendation:
As per Trendlyne data, the consensus recommendation from 15 analysts for Vedanta Ltd. is BUY. Of the total, 8 brokerages have recommended ‘STRONG BUY’ and 1 broker suggested ‘BUY’. EPS is expected to grow by 206.2% in FY25. The average 1-year target price is at Rs 513.27 apiece, hinting at over 17% potential upside.
Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.
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