metals · VEDL
Vedanta Limited
Vedanta Limited: PE above historical average. ROTATIONAL regime.
Price
₹264.25
Price 2026-07-31
5 day
-0.15%
Short-term move
1 month
-4.10%
Medium-term
Regime
ROTATIONAL
68% confidence
Market cap
₹107.4k Cr
neutral sector flow
Market Intelligence Analyst
Understand today's market in about 2 minutes.
“How does today's ROTATIONAL regime affect Vedanta Limited (VEDL) in the metals sector?”
Price chart
₹265
-39.50% over period
About Vedanta Limited
Vedanta Limited, a diversified natural resources company, explores, extracts, and processes minerals, and oil and gas in India, Europe, China, the United States, Mexico, and internationally. The company explores, produces, and sells oil and gas, zinc, lead, silver, copper, aluminum, iron ores, and metallurgical coke. It also operates a thermal coal-based commercial power facility of 600 megawatts (MW) at Jharsuguda in Odisha; a 1,200 MW thermal coal-based power plants in the Chhattisgarh; 1,980 MW thermal coal- based commercial power facilities in Punjab; wind power plants; and a 1,000 MW coal-based power plant at Nellore, Andhra Pradesh. In addition, it manufactures and supplies billets, TMT bars, wire rods, and ductile iron pipes; mechanizes coal handling facilities and upgrades general cargo berth for handling coal at the outer harbor of Visakhapatnam Port on the east coast of India; offers port/berth services; and manufactures glass substrates, semiconductor, displays, ferro alloys, and slag cements. The company was formerly known as Sesa Sterlite Limited and changed its name to Vedanta Limited in March 2015. The company was founded in 1954 and is headquartered in Mumbai, In...
At a Glance
RSI pattern warning
RSI oversold bounces for this stock succeeded only 0% of the time (avg -16.1% over 14 days) — not a reliable pattern.
52-week position
Trading at 33.2% of 52-week high
Technicals
RSI 14
44.6
Trend
downtrend
50 DMA
Below
200 DMA
Below
Key metrics
P/E ratio
15.3
71th pct · 7 quarterly points (limited history)
P/B
2.2
ROE
20.4%
Strong profitability — 20.4% return on equity
Market cap
₹107.4k Cr
Revenue growth
-4130.0% YoY
Promoter
58.5%
52-week range
₹268.7 – ₹795
33.2% of high
RSI (14)
44.6
downtrend
vs 50 DMA
Below
DMA ₹289.91
Fundamental
95/100
STRONG
Trust
95/100
Verification
Coverage
100/100
HIGH
Quick Take
Vedanta Limited scores 95/100 on fundamentals (strong). Vedanta Limited: PE above historical average. ROTATIONAL regime.
Fundamental Score: 95/100 · STRONG · 1 signals detected
DuPont Analysis
ROE 51.6% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 51.6% is strong leverage-driven and stable. Net margin 24.6%, asset turnover 0.37x, leverage 5.7x. High leverage amplifies returns but increases risk.
What This Means
Net margin of 24.6% means the company keeps ₹24.6 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.37x means the company generates ₹0.37 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 5.7x means the company uses significant debt. Higher leverage amplifies returns but also risk.
Margin Structure
Gross
51.1%
Operating
27.7%
Net
24.6%
Gross margin 51.1% → operating margin 27.7% → net margin 24.6%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.
Financial Health
Earnings Quality
STRONGCash flow covers net income 1.9x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.
Debt Sustainability
COMFORTABLEInterest covered 7.9x — very comfortable. Debt service is not a concern. Debt/EBITDA at 1.2x is low — balance sheet has capacity.
Free Cash Flow
MODERATEFCF margin at 21.7% — strong cash generation. Business is self-funding.
Peer comparison
| Stock | Price | 5D | P/E | ROE | Rev growth | Mcap |
|---|---|---|---|---|---|---|
| JSWSTEEL JSW Steel | ₹1,270 | +2.4% | 13.7 | 27.3% | 1420% | ₹3.0L Cr |
| HINDZINC Hindustan Zinc | ₹539.2 | +1.4% | 16.2 | 76.9% | 4300% | ₹2.2L Cr |
| HINDALCO Hindalco Industries | ₹970.4 | +1.5% | 16.1 | 10.3% | 2040% | ₹2.2L Cr |
| JINDALSTEL Jindal Steel | ₹1,093.7 | +5.0% | 31.2 | 6.8% | 2300% | ₹1.1L Cr |
| NATIONALUM National Aluminium Co | ₹350.05 | +1.8% | 10.2 | 29.4% | -480% | ₹62.9k Cr |
| APLAPOLLO APL Apollo Tubes | ₹1,819.5 | -0.2% | 42 | 25.3% | 1360% | ₹50.5k Cr |
| HINDCOPPER Hindustan Copper | ₹491.6 | +1.8% | 52.1 | 30.6% | 5810% | ₹47.9k Cr |
| JINDALSAW Jindal Saw | ₹254.3 | -2.5% | 17.2 | 8% | -820% | ₹16.7k Cr |
| VEDL Vedanta Limited | ₹264.25 | -0.1% | 15.3 | 20.4% | -4130% | ₹1.1L Cr |
Key Watchpoints
Breaks above ₹277 (+5%)
Trend reversal confirmation
Breaks below ₹251 (-5%)
Further downside risk
PE reverts to median of 12.2 (7 quarterly points (limited history))
Valuation normalization
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.
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.
Company not overvalued on revenue basis.
⚠️ 1 critical + 2 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes
