Vedanta Ltd (VEDL) — share price & stock analysis

Market cap

₹1,07,751 Cr

P/E

6.2×

ROE

38.2%

vs own 10-yr valuation

79th pctile

Book value / share

₹127

EPS (TTM)

₹44.4

10-yr median P/E

3.2×

Revenue (FY26)

₹78,437 Cr

Profit after tax (FY26)

₹25,096 Cr

Weinstein stage

Stage 2 (54 weeks)

Data as of

1 July 2026

3 of the 6 things we track are currently moving the right way — most of the dashboard is turning up.

Where the levels actually stand: ROCE 16% — decent; debt moderate (0.66× equity); margins near the top of their band. Momentum says which way things are moving; these say where they are.

Read this number for what it is: it measures the DIRECTION of change, not the quality of the business. A mediocre business getting better scores high here; a great one having a soft quarter scores low. Profit, sales and margins count double.

The price has risen while profits fell

Since Jun 2016, the stock is up 464% while earnings per share fell 4%. The difference is re-rating — investors paying more for the same rupee of profit.pricettm_eps

That works until it doesn’t: from here, earnings have to do the lifting, because the multiple has already done its part.

Today’s P/E of 6.2× means the market is paying up — this is the expensive end of its own 10-year history (79th percentile).pe_ratio

Price is the weekly close (₹). EPS is trailing-twelve-month profit per share, anchored on Screener's own snapshots (the window starts at the first stable snapshot — earlier IPO-era share-count revisions are excluded, since they are not earnings events); between snapshots it is filled from price ÷ P/E (an exact identity), and any fill straying more than 18% from the neighbouring snapshots is dropped rather than shown. The lower panel is the P/E — what the market pays per rupee of profit; the dotted line is its long-run median (3.2×).

The price is in a confirmed uptrend — 54 weeks and counting

Stock prices move through four repeating stages: basing (1), advancing (2), topping (3) and declining (4). This one is in Stage 2: advancing, 54 weeks in, confirmed.stage

The price sits above its rising 200-day average (₹249 today) — trends like this persist more often than they reverse, which is why the system rides them instead of guessing the top.dma_200

Beating NIFTY 500 for 45 weeks — relative strength is the market’s live opinion, and right now it is on this stock’s side.rs_mansfield

What would end it: two Friday closes in a row below the 200-day line. That is the house exit rule — mechanical, no debates.dma_200

From losing money in FY15 and FY16 and FY20 to record profits

Over 12 years, sales went from ₹66,152 Cr to ₹78,437 Cr (about 1% a year), and profit from ₹11,421 Cr to ₹25,096 Cr.revenuenet_profit

The books show real losses in FY15 and FY16 and FY20 (worst: ₹−17,862 Cr). Everything about today’s cheap-looking numbers must be read against that history — the recovery is what you are buying.net_profit

Sales exploded 48% last quarter

Mar 26 sales were ₹24,609 Cr, up 48% on the same quarter last year.revenue

Margins have been rebuilt — 23.4% in FY23 to 29.6% now

Of every ₹100 of sales, the company keeps ₹30.7 as operating profit (a year ago it kept ₹31.4).opm_pct

Zoom out and this is the page's quiet hero: annual operating margin bottomed at 23.4% in FY23 and has been rebuilt to 29.6% — that recovery, not sales alone, is what powers the profit growth elsewhere on this page.operating_profit

Profit exploded 89% — mostly from income from outside the core business

Mar 26 profit after tax was ₹9,352 Cr, up 89% year on year.net_profit

A caution: a meaningful slice of this jump came from income outside the core business — that is lower-quality profit and may not repeat.other_income

The profits are real — they turn into cash

Over the last 5 profitable years, the business reported ₹91,383 Cr of profit and collected ₹1,82,743 Cr of operating cash — about 200% conversion.operating_cash_flownet_profit

When cash tracks profit this closely, the earnings need no asterisk.

The cash cycle is tightening — money comes home faster

One rupee now takes about -16 days to go out the door as materials and come back as collected cash — down from 90 days the year before.cash_conversion_cycle

The biggest mover: inventory moving faster off the shelf (234 → 66 days).inventory_days

Building hard — new capacity is under construction

The productive asset base has gone from ₹87,205 Cr (FY14) to ₹30,548 Cr, with another ₹10,531 Cr of capacity under construction right now.fixed_assetscwip

Work-in-progress is 34% of the existing asset base — that is a serious bet on future demand. Capacity like this shows up in sales with a lag; it is tomorrow’s growth being paid for today.cwip

The build is self-funded: the last 3 years' investing outflow (₹56,968 Cr) fits inside the operating cash the business generated (₹1,14,715 Cr).investing_cash_flowoperating_cash_flow

Debt is present but comfortable

For every ₹100 shareholders have put in (and left in), the company has borrowed ₹66 — total borrowings have shrunk from ₹80,566 Cr to ₹32,947 Cr over the window.borrowings

Every ₹100 kept in the business earns ₹16 — decent, not special

Return on capital employed is 16.0% (a year ago: 12.0%). This is the single best test of business quality: what the company earns on the money it keeps.roce_pct

Rising returns on capital while growing is the rarest combination in investing — it means the new projects earn more than the old ones.roce_pct

Promoter holding dropped in one step — an event, not a slow exit

Promoters hold 56.4% (down 2.9 points over 8 quarters). Foreign funds own 13.9%, domestic funds 13.4%.promoters_pctfiis_pctdiis_pct

The promoter move came in a single step (Sep 24) — promoters rarely buy on-market, so a jump like this is almost always an allotment, infusion or restructuring: a capital event, not a slow accumulation of conviction. Worth knowing which, before reading it as a signal.promoters_pct

Worth studying deeper — with eyes open

The numbers lean positive, and the price already assumes the good news continues.

Best thing in the data: profit rising (₹4,961 Cr → ₹9,352 Cr).net_profit

Biggest worry: domestic-fund holding falling (16.4% → 13.4%).diis_pct

Machine-written research from Screener data — every number traces to its source column. Sector Alpha is not a SEBI-registered investment adviser; nothing here is a recommendation to buy or sell. Not investment advice.

Straight answers from the data