Anil Agarwal Led Vedanta Shares in Focus: Hits 1 GW Renewable Milestone, Stock Up 300% in 5Y; Buy/Hold/Sell?

Vedanta shares are in the spotlight in today's trade after a major announcement by the company, which includes a huge development in its renewable energy portfolio. Despite the positive updates, Vedanta shares have been trading largely flat, with limited movement post the Q4 results which were announced in April this year. Several top brokerages have issued mixed ratings on the stock. Here's a complete breakdown of Vedanta's performance.

Vedanta Shares Price Movement

Vedanta shares today remained largely flat on the stock exchanges . The stock opened at Rs. 438.50 on the BSE and saw a mild uptick of 0.38% intraday. While recent returns have been mixed up 4.53% in the past month but down 7.17% over the last 6 months, the long-term chart tells a different story. Vedanta shares have surged over 316% in the past five years, making it one of the standout performers in the mining and metals sector.

Should You Buy Vedanta Shares Now? Here's What Top Brokerages Say

While Vedanta shares are currently trading sideways, analysts remain divided on the stock's near-term potential despite its solid long-term fundamentals.

Antique Broking has maintained a 'Hold' rating on Vedanta with a target price of Rs. 478, suggesting a potential upside of around 9% from the current market price (CMP) of Rs. 437.

On the other hand, Kotak Institutional Equities has given a 'Reduce' rating, with a target of Rs. 435, slightly below its current price, signalling a limited upside or potential downside.

Motilal Oswal Financial Services has reiterated its 'Neutral' stance, with a target price of Rs. 470, offering a 12% upside from its CMP . The report stated, "The stock currently trades at 4.9x FY27E EV/EBITDA. We have marginally cut our estimates for FY27. We reiterate our neutral rating on the stock with an SoTP-based target price of Rs. 470."

Major developments of the company recently

Vedanta Crosses 1.03 GW Green Energy Capacity

In a significant green milestone, Vedanta Ltd announced that it has crossed 1.03 gigawatts (GW) of renewable energy capacity across its operations. This aligns with the company's long-term goal of achieving 2.5 GW of renewable energy capacity by 2030. The company is scaling up its round-the-clock (RTC) renewable power supply through structured power purchase agreements to cut carbon emissions and improve sustainability across its production chains.

This move is part of Vedanta's larger ESG (Environmental, Social, and Governance) commitment to transition towards low-carbon operations, particularly within its energy-intensive verticals like aluminium, zinc, and copper.

Vedanta Raises Rs. 4,100 Crore via Bonds

To support its ongoing capex and reduce existing debt, Vedanta Ltd is raising Rs. 4,100 crore through the issuance of unsecured non-convertible debentures (NCDs). According to sources, the proceeds from the bond sale will be utilised primarily for repayment of high-interest borrowings and to fund capital expenditure in renewable energy and other strategic initiatives.

This might ease the company's debt burden and improve its financial flexibility, especially at a time when the group is realigning its business portfolio under a proposed corporate restructuring plan.

Vedanta Q4 Results

Vedanta Ltd announced its Q4 FY25 results on April 30, where the company reported a revenue rise of 14% year-on-year to Rs. 40,455 crore. Its EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) surged 31% to Rs Rs.11,466 crore, up from Rs 8,768 crore in the same quarter last year.

The EBITDA margin also saw a significant expansion of nearly 400 basis points, improving from 24.7% to 28.3%. On the balance sheet front, Vedanta successfully brought down its net debt to Rs. 53,251 crore as of the March quarter, compared to Rs. 56,338 crore a year ago and Rs. 57,358 crore in the preceding December quarter.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor GoodReturns. The author, nor the brokerage firm nor GoodReturns would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.