⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
VEDL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | VEDL | Market Cap | 2,65,746 Cr. | Current Price | 679 ₹ | High / Low | 770 ₹ |
| Stock P/E | 53.0 | Book Value | 189 ₹ | Dividend Yield | 6.41 % | ROCE | 18.5 % |
| ROE | 21.8 % | Face Value | 1.00 ₹ | DMA 50 | 674 ₹ | DMA 200 | 564 ₹ |
| Chg in FII Hold | 1.07 % | Chg in DII Hold | -0.94 % | PAT Qtr | 33.5 Cr. | PAT Prev Qtr | -449 Cr. |
| RSI | 45.0 | MACD | 4.30 | Volume | 1,16,42,845 | Avg Vol 1Wk | 1,19,58,354 |
| Low price | 362 ₹ | High price | 770 ₹ | PEG Ratio | -13.1 | Debt to equity | 0.71 |
| 52w Index | 77.8 % | Qtr Profit Var | 111 % | EPS | 31.3 ₹ | Industry PE | 27.7 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT recovered to 33.5 Cr. from a loss of -449 Cr., showing turnaround but still weak earnings. EPS at 31.3 ₹ is decent.
- Margins & Returns: ROCE at 18.5% and ROE at 21.8% indicate solid efficiency and shareholder returns.
- Debt: Debt-to-equity ratio of 0.71 is relatively high, raising leverage concerns.
- Cash Flow: Supported by strong dividend payouts, but debt levels may pressure liquidity.
💹 Valuation
- P/E Ratio: 53.0 vs Industry PE of 27.7 → Overvalued relative to peers.
- P/B Ratio: Current Price 679 ₹ vs Book Value 189 ₹ → High premium.
- PEG Ratio: -13.1 → Negative PEG highlights growth concerns.
- Intrinsic Value: Current price trades above fair value, limited margin of safety.
🏢 Business Model & Competitive Advantage
- Diversified natural resources and metals business with global presence.
- Strong dividend yield of 6.41% provides investor returns.
- High debt levels reduce resilience compared to peers.
📈 Technicals & Entry Zone
- RSI at 45.0 → Neutral zone, potential accumulation opportunity.
- MACD positive (4.30) → Improving momentum, short-term bullish trend.
- Entry Zone: Attractive accumulation between 650–670 ₹.
- Long-Term Holding: Suitable for dividend-focused investors, but debt and valuation risks remain.
✅ Positive
- Strong ROE and ROCE indicate efficient capital use.
- Dividend yield of 6.41% provides consistent investor returns.
- Quarterly PAT recovery from losses shows operational turnaround.
⚠️ Limitation
- High debt-to-equity ratio (0.71) raises financial risk.
- Negative PEG ratio highlights weak growth prospects.
- Valuation premium compared to industry peers.
📉 Company Negative News
- DII holdings decreased by 0.94%, showing reduced domestic institutional confidence.
- High leverage remains a concern for long-term stability.
📈 Company Positive News
- FII holdings increased by 1.07%, reflecting renewed foreign investor interest.
- Quarterly PAT turnaround from -449 Cr. to 33.5 Cr. indicates recovery.
- Strong 52-week performance up 77.8%, showing investor confidence.
🏭 Industry
- Industry PE at 27.7 suggests sector trades at lower multiples.
- VEDL commands premium valuation due to scale and dividend yield, but debt remains a drag.
🔎 Conclusion
VEDL shows a recovery in profitability and offers strong dividend yield, making it attractive for income-focused investors. However, high debt levels and stretched valuations compared to industry peers raise caution. Entry is favorable near 650–670 ₹ for long-term investors seeking dividend stability, but growth concerns and leverage risks must be carefully considered.