Vedanta (VEDL)

FairStock Score: 50/100 — MIXED

Score breakdown: P/E: 1/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 1/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Vedanta as a Graham-style bargain hunter, not a story chaser. At ₹267.50, it trades near the bottom of its 52-week range of ₹247.20–₹795.00, with a market cap of ₹1.04 lakh Cr, P/E of 11.75 and P/B of 2.10 against book value of ₹127.16. The Graham Number is ₹289.36, so the price is not wildly above that anchor, but the stated margin of safety is -148.27%, which tells me the quoted intrinsic-value signals are conflicting and I should demand a larger discount. The business is a diversified metals cyclical. It earns impressive returns: ROE 51.57%, ROCE 25.26%, and debt/equity is moderate at 0.48. Free cash flow is ₹20,404 Cr, and the dividend yield is 12.71%, backed by latest-quarter net profit of ₹7,807 Cr on sales of ₹23,369 Cr. A Piotroski F-Score of 7/9 suggests recent accounting strength. Promoter holding of 56.38% aligns ownership, but commodity businesses rarely possess a durable moat. Yet growth is contracting: sales fell 51.34% and profit 23.65%. The current ratio of 0.70 reveals weak short-term liquidity, Altman Z-Score of 2.04 sits in a cautionary zone, and EV/EBITDA of 264.96 is extreme. The DCF value of ₹2,793.39 looks alluring, but I do not rely on one rosy calculation when FairStock Score is 50/100 and the PEG is 1.17. Vedanta may be a cyclical asset play with income appeal, but I would wait for commodity prices and cash flows to stabilize before calling it a margin-of-safety bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer