metals
Vedanta Limited
VEDL · Nifty 50
₹306.5
Price 2026-06-17
At a Glance
Fundamental
100/100
STRONG
Trust
95/100
Verification
Coverage
44/100
LIMITED
Quick Take
Vedanta Limited scores 100/100 on fundamentals (strong). Vedanta Limited: BROAD EXPANSION regime.
Fundamental Score: 100/100 · STRONG · 1 signals detected
DuPont Analysis
ROE 38.4% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 38.42% is strong leverage-driven and stable. Net margin of 19.0% × asset turnover of 0.43x × leverage of 4.7x.
What This Means
Net margin of 19.0% means the company keeps ₹19.0 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.43x means the company generates ₹0.43 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 4.7x means the company uses significant debt. Higher leverage amplifies returns but also risk.
Margin Structure
Gross
48.2%
Operating
24.7%
Net
19.0%
Gross margin 48.2% → operating margin 24.7% → net margin 19.0%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
STRONGCash flow covers net income 2.1x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.
Debt Sustainability
COMFORTABLEInterest covered 5.2x — adequate buffer. Debt is manageable. Debt/EBITDA at 1.1x is low — balance sheet has capacity.
Free Cash Flow
MODERATEFCF margin at 18.5% — strong cash generation. Business is self-funding.
Peer Comparison
Vedanta Limited is compared against 10 peers in the metals sector.
Key Watchpoints
Breaks above ₹322 (+5%)
Trend reversal confirmation
Breaks below ₹291 (-5%)
Further downside risk
Metals sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
Significant income from non-operating sources. Core business may be smaller than it appears.
Elevated risk score. Review audit, board, and shareholder rights metrics.
Governance structure concerns. Independent director representation may be weak.
Profits are from core operations, not one-offs. High quality.
Strong insider alignment. Promoters have significant skin in the game.
⚠️ 1 critical + 3 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes