Vedanta Ltd.
Metals · NSE
52-week range
₹269 – ₹795
From 52w high
-62.7%
RSI (14)
21.9
vs SMA 50 / 200
↓ 50 · ↓ 200
Vedanta Ltd. (VEDL) is a diversified metals and natural-resources conglomerate listed on the NSE, currently priced at ₹296.6 after a corporate demerger that took effect on 30 April 2026 adjusted the ex-date share price. The 62.69% drawdown from the 52-week high and 53.98% decline over 3 months are primarily a consequence of that structural corporate event rather than purely market-driven selling. The stock carries a debt-to-equity ratio of 48.04, a trailing PE of 16.5, and a trailing dividend yield of 11.47%.
- ✓ROE of 20.4% ranks first among the 5 reportable sector peers in the Metals sector, and the quality score of 59 ranks highest in the peer group (ranked 1st of 6 on available data).
- ✓Dividend yield of 11.47% is the highest observable yield figure in the peer set; FCF was positive in 4 of the available persistence years with a falling debt trend reported.
- ✓5-year earnings growth of +92.2% demonstrates that net profitability expanded sharply even as revenue contracted, indicating significant margin improvement over the period.
- ✓Trailing PE of 16.5 (2nd lowest among peers with valid PE) and forward PE of 11.9 reflect a valuation compressed relative to JSW Steel (PE 42.0) and Tata Steel (PE 29.0).
- ✗Debt-to-equity of 48.04 is extremely elevated; this level of leverage amplifies downside sensitivity to commodity price cycles, interest rate moves, and revenue shocks.
- ✗5-year revenue growth of -41.3% indicates cumulative top-line contraction; the divergence from the +92.2% earnings growth trajectory raises questions about earnings quality, asset disposals, and the sustainability of the margin base.
- ✗ROE above 15% was observed in only 3 of the available persistence years (consistencyScore 61), suggesting that the current 20.4% ROE is not uniformly maintained across cycles.
- ✗Price is below both the 50-DMA (₹643.06) and 200-DMA (₹549.96); while the demerger event is the primary mechanical driver of this gap, the post-demerger price of ₹296.6 relative to these pre-demerger averages means the moving-average signals will remain distorted until the averages reprice to post-demerger levels.
- ·On 30 April 2026 Vedanta traded ex-demerger; multiple outlets including Moneycontrol and Economic Times noted the apparent 63–65% single-day price fall was a mechanical accounting adjustment reflecting the spin-off of subsidiaries, with the effective economic decline described as approximately 5% on that date.
- ·Post-demerger, Business Today coverage raised questions about fair value of the demerged entities and how investors should assess the reconstituted VEDL entity — this structural change means historical financials and technical levels require re-evaluation against the new corporate perimeter.
- ·News sentiment across 8 articles skewed heavily neutral (7 neutral, 1 positive, 0 negative), with coverage concentrated entirely on the demerger event rather than operational or macro catalysts.
- ?Does the 48.04 debt-to-equity ratio reflect leverage taken on to fund core operations and capital expenditure, or does it partly represent intra-group financing that the demerger has altered — and what is the post-demerger standalone D/E?
- ?With 5-year revenue down 41.3% and 5-year earnings up 92.2%, what proportion of earnings growth came from asset sales, demerger accounting adjustments, or genuine operating margin expansion in the remaining business?
- ?How does the post-demerger corporate perimeter of VEDL compare to the pre-demerger entity in terms of commodity exposure, geographic footprint, and capital allocation priorities — and are the historical ROE and FCF figures representative of the forward entity?
- ?Given the demerger-adjusted price is now 46% below the 200-DMA, what timeline and conditions would allow the technical moving averages to converge with the new post-demerger price reality, and how does that affect comparability with peers still quoting pre-adjustment levels?
PE
16.5
Forward PE
11.9
ROE
+20.4%
Profit margin
+22.7%
D/E
48.04
Dividend yield
+11.5%
Quality score
59/100
ROE 5y above 15%
3/5 yrs
FCF 5y positive
4/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.