The shares of a Mining company, specializing in the exploration, extraction, and production of natural resources, including metals and minerals, are in focus following the demerger delay after India’s petroleum ministry requested more time to review the proposal.
With a market capitalization of Rs. 1,82,810.64 crores on Thursday, the shares of Vedanta Limited declined by upto 1.02 percent, making a low of Rs. 464.80 compared to its previous close of Rs. 469.60.
Vedanta Limited, engaged in the exploration, extraction, and production of natural resources, including metals and minerals, is in focus after a delay in its demerger process, as India’s petroleum ministry requested more time to review the proposal at the NCLT hearing. SEBI is still reviewing Vedanta’s compliance, while NSE has already approved the plan. The next hearing is set for August 20.
Despite the delay, there are positives for investors. The demerger aims to split Vedanta into five separate listed companies, giving shareholders one share in each new entity for every share they hold now, potentially unlocking more value.
Financials & Others
The company’s total revenue rose by 14.19 percent from Rs. 36,093 crore to Rs. 41,216 crore in Q4FY24-25. Meanwhile, Net profit grew from Rs. 1,369 crore to Rs. 3,483 crore during the same period.
The company has a P/E ratio of 13.69, which is much lower than the industry average of 33.12, indicating potential undervaluation. Its low PEG ratio of 0.07 further supports this view. Additionally, the company offers a strong dividend yield of 9.26%, making it attractive for income-focused investors.
Vedanta Limited is a global natural resources company with a diverse portfolio and operates in various countries, with a strong presence in India. The company is one of the largest producers of metals and minerals, and it focuses on sustainable development and operational excellence.
It operates in diverse sectors, primarily focusing on metals such as aluminum, copper, zinc, lead, and iron ore. The company is also involved in oil and gas exploration and production, as well as commercial power generation.
In addition to its core operations, Vedanta manufactures pig iron and metallurgical coke and offers shipping and port services. The company has a strong presence in India and across various global regions, including the US, Asia-Pacific, Europe, the Middle East, and Africa.
Written by Sridhar J
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