⚠ 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: 3.9
| Stock Code | VEDL | Market Cap | 2,55,758 Cr. | Current Price | 655 ₹ | High / Low | 770 ₹ |
| Stock P/E | 51.0 | Book Value | 189 ₹ | Dividend Yield | 6.64 % | ROCE | 18.5 % |
| ROE | 21.8 % | Face Value | 1.00 ₹ | DMA 50 | 611 ₹ | DMA 200 | 514 ₹ |
| Chg in FII Hold | 1.07 % | Chg in DII Hold | -0.94 % | PAT Qtr | 33.5 Cr. | PAT Prev Qtr | -449 Cr. |
| RSI | 51.1 | MACD | 31.5 | Volume | 5,21,00,423 | Avg Vol 1Wk | 3,86,32,273 |
| Low price | 362 ₹ | High price | 770 ₹ | PEG Ratio | -12.6 | Debt to equity | 0.71 |
| 52w Index | 71.8 % | Qtr Profit Var | 111 % | EPS | 31.3 ₹ | Industry PE | 30.7 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT recovered strongly from -449 Cr. to 33.5 Cr., showing turnaround momentum.
- Margins & Returns: ROCE at 18.5% and ROE at 21.8% indicate solid efficiency and profitability.
- Debt Ratios: Debt-to-equity at 0.71 reflects relatively high leverage compared to peers, requiring monitoring.
- Cash Flows: Strong dividend yield (6.64%) suggests healthy cash generation, though debt levels may constrain flexibility.
💹 Valuation Indicators
- P/E Ratio: 51.0 vs industry average of 30.7 → trades at a premium.
- P/B Ratio: Current Price / Book Value ≈ 3.46 → moderately above fair value.
- PEG Ratio: -12.6 → negative, signaling weak growth outlook relative to valuation.
- Intrinsic Value: Current price (655 ₹) appears stretched compared to fundamentals, but supported by strong returns and dividend yield.
🏢 Business Model & Competitive Advantage
- Diversified natural resources and metals company with global presence.
- Strong dividend payout enhances shareholder value.
- Operational scale and resource base provide competitive edge, though debt levels remain a concern.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 620 ₹ – 640 ₹, near 50 DMA support.
- Long-Term Holding: Suitable for dividend-focused investors; staggered buying recommended due to leverage and valuation risks.
✅ Positive
- Strong ROE and ROCE highlight efficiency.
- Dividend yield of 6.64% provides steady income.
- Quarterly profit turnaround from losses to positive earnings.
- FII holdings increased (+1.07%), reflecting foreign investor confidence.
⚠️ Limitation
- High debt-to-equity ratio (0.71) increases financial risk.
- Premium valuation compared to industry peers.
- Negative PEG ratio signals weak growth outlook.
📉 Company Negative News
- Sequential PAT remains modest despite recovery.
- DII holdings decreased (-0.94%), showing reduced domestic institutional confidence.
📈 Company Positive News
- Quarterly profit variation of 111% indicates strong recovery momentum.
- MACD at 31.5 and RSI at 51.1 suggest neutral-to-positive technical outlook.
- High trading volumes reflect strong investor interest.
🏭 Industry
- Industry P/E at 30.7 indicates sector trades at lower multiples.
- Metals and mining sector benefits from global demand cycles but remains volatile.
- VEDL commands premium valuation due to scale and dividend yield.
🔎 Conclusion
VEDL demonstrates strong fundamentals with high efficiency and attractive dividend yield, but trades at a premium and carries relatively high debt. Entry is advisable near 620 ₹ – 640 ₹ for long-term investors, with staggered accumulation to mitigate risks. Overall, the company remains strategically positioned in the resources sector, though growth outlook and leverage warrant cautious optimism.
Would you like me to also compare VEDL’s dividend yield and leverage profile against top peers in the metals sector to highlight relative strengths and risks?