8.18% Dividend Yield: Largecap Multibagger Metal Stock Vedanta Hits Record High; M-Cap Crosses Rs 2 Lakh Crore

Vedanta Ltd, the Anil Agarwal-led metals and mining giant, scaled new highs on Wednesday, hitting its record high of Rs 525.15 per share on the BSE. The surge came amid a mild rally in the broader market, propelling Vedanta's market capitalization to Rs 2.02 lakh crore for the first time in its history.

A total of 9.97 lakh shares changed hands during the session, resulting in a turnover of Rs 51.70 crore on the BSE. The stock surged 5% intraday, outperforming most of its peers in the metals and mining sector.

Vedanta's one-year beta stands at 1.3, reflecting high volatility. On the technical front, its Relative Strength Index (RSI) is at 69.9, indicating the stock is neither overbought nor oversold. Currently, Vedanta is trading above its 5-day and 10-day moving averages but remains below the 30-day, 50-day, 100-day, and 150-day moving averages.

The stock has been a top performer, gaining 101% in 2024 and delivering multibagger returns of 108% over the past year. Over the last five years, Vedanta's shares have risen by a staggering 274.17%. In the last 10 trading sessions alone, the stock has gained nearly 18%, registering positive momentum in nine of these sessions.

Vedanta's rally in 2024 marks a recovery from the negative returns witnessed in 2022 and 2023. The stock's 92% rise this year mirrors its robust performance in 2016, when it delivered a 139% annual return, and in 2021, when it gained 110%. This year's rally has been fueled by a combination of strong fundamentals, investments, and a favourable market environment.

At the recent Rising Rajasthan summit, Vedanta Chairman Anil Agarwal announced a plan to invest Rs 1 lakh crore in Rajasthan over the coming years. The investment is expected to focus on expanding operations and bolstering economic growth in the state.

Vedanta is also in the midst of a transformation, with plans to demerge into six separate entities. This restructuring, aimed at unlocking shareholder value and streamlining operations, is progressing rapidly. The demerger will focus on segregating the company's business verticals, including metals, power, and oil & gas.

Vedanta's performance has drawn the attention of analysts, with most maintaining a positive outlook. Out of 15 analysts covering the stock, nine have issued a "buy" rating, five recommend "hold," and only one suggests "sell."

Brokerage firm Equirus reaffirmed its "buy" rating on Vedanta, with a target price of Rs 560, citing attractive valuations and strong growth potential. The firm forecasts a compounded annual growth rate (CAGR) of 8.4% for revenue, 16% for EBITDA, and a staggering 76.5% for net profit.

Nuvama, the most optimistic among analysts, set a target price of Rs 663, while Kotak Securities, which issued the sole "sell" recommendation, has the lowest target of Rs 430 per share. Analysts, on average, forecast a 7.2% upside for Vedanta over the next 12 months.

As of 1:20 pm on the NSE, Vedanta shares were trading at Rs 517.20, up nearly 3.5%.