- Vedanta’s net income for the first quarter is 31.85 billion rupees, surpassing analyst estimates of 28.99 billion rupees but marking a 12% decline year-over-year.
- The company’s revenue reached 378.2 billion rupees, demonstrating a 5.8% increase compared to the prior year.
- Total costs amounted to 327.6 billion rupees, reflecting a rise of 6.5% from the previous year.
- Vedanta reduced its finance costs by 8.6%, bringing the total to 20.3 billion rupees.
- Other income increased by 5.5%, totaling 9.85 billion rupees.
- Zinc international sales surged by 53% year-over-year to 11.5 billion rupees, though they fell short of the estimated 12.87 billion rupees.
- Copper sales climbed 35% year-over-year to 63.7 billion rupees, exceeding the estimate of 56.7 billion rupees.
- Iron ore sales slightly increased by 0.8% year-over-year, reaching 13.3 billion rupees, lower than the estimated 14.57 billion rupees.
- Analysts’ recommendations include 11 buys, 4 holds, and 1 sell for Vedanta.
Vedanta Ltd on Smartkarma
On Smartkarma, independent analysts are offering diverse perspectives on Vedanta Ltd. Nimish Maheshwari‘s research raises concerns about Vedanta Group, suggesting it might be running a Ponzi scheme. The report highlights aggressive dividends, debt-funded activities, and stagnancy in expansion plans as red flags. In contrast, Rahul Jain‘s insights provide a more optimistic view. Jain sees potential value in Vedanta’s demerger, particularly in Aluminium and Residual Vedanta, offering over 20% upside. However, regulatory delays and commodity price volatility pose risks to this bullish outlook.
Furthermore, Jain’s analysis on Vedanta’s growth trajectory paints a positive picture. Strong revenue and EBITDA growth in FY25, driven by volume expansion in aluminium and zinc, demonstrate a promising path forward for the company. With major capex projects in the pipeline and a focus on deleveraging, Vedanta appears well-positioned for continued growth through FY27. These contrasting viewpoints from industry experts offer investors a spectrum of insights to consider when evaluating their stance on Vedanta Ltd.
A look at Vedanta Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Vedanta Ltd appears to have a positive long-term outlook. The company scored highly in factors such as Dividend and Resilience, indicating strong performance in these areas. With a focus on base metal mining and production, including zinc, iron ore, copper, silver, and aluminium, as well as operating power plants, Vedanta’s global reach in product distribution bodes well for its future growth.
While Vedanta received average scores in Value, Growth, and Momentum, the overall outlook remains promising, given its solid performance in Dividend and Resilience. Investors may find Vedanta to be a stable investment option with the potential for consistent returns and resilience in the face of market fluctuations, supported by its diversified operations and strong dividend yield.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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