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Vedanta Limited (VEDL) Fair Value & Analysis

Basic Materials · IN · Market cap ₹988B (≈ $10.5B) · ISIN INE205A01025

What is Vedanta Limited really worth?

VL Vedanta Limited VEDL · NSE
Price₹272.10
Fair Value₹303.09
Upside+11.4%
Quality53/100

A solid business, trading 10% below our fair value of ₹303.09.

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Strengths

Highly profitable · 22.6% net margin
Low debt · generates free cash flow
Ranks above peers (11/14)
Wide moat 75/100

Risks

!Weak Growth (revenue 5y −2.1 %/yr)
!Evidence only medium, so the estimate is less certain
!The models disagree: range ₹216.43 to ₹748.00

For context

·12.50% dividend yield
Evidence: Medium Range ₹216.43 – ₹748.00

Fair value as of: Aug 25, 2026

From 26 valuation models · updated 11 days ago

Fair value updated Aug 25, 2026, revised from ₹520.36 to ₹303.09 (−41.8%) since Aug 13, 2026. Share price −1.8% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The model range is unusually wide (₹216.43 to ₹748.00). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • The price sits in the lower half of our model range, the side with the larger margin of safety.
  • Read the verdict with care: some models are missing inputs, so the estimate scatters more than usual.

Price vs Fair Value (5 years)

₹787.50 ₹120.26 Fair Value ₹303.09 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 25, 2026.

How to read this chart

60‑month range ₹120.26 – ₹787.50 · fair‑value band ₹216.43 – ₹748.00 · the ₹272.10 price screens below the ₹303.09 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 2 fiscal years are left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 25, 2026.

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Analysis

Vedanta Limited (VEDL) currently trades at ₹272.10, while our model-based Fair Value estimate is ₹303.09, implying the stock looks roughly 10.2% undervalued today. The Quality Score stands at 53/100 (solid quality), in the Basic Materials sector. Bull case: the Growth Earnings group reads highest at a median of ₹1,918 per share, and 23 of the 26 models we run sit above the ₹272.10 price. Bear case: the Asset-Based group reads lowest at ₹70.06, and 3 of the 26 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Vedanta Limited generated revenue of ₹767B at a net margin of 22.7%. Revenue declined 41.3% year over year. It earns a return on equity of 20.4%. Net debt stands at ₹292B. Fundamentals as of Aug 25, 2026

Our scenario range runs from ₹216.43 (bear case) to ₹748.00 (bull case); at ₹272.10, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 66% below its 52-week high and 1% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at −37% fair-value upside, at 11%, VEDL screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
EPV best evidence ₹315.00 ₹377.29 ₹432.67 74
FCF DCF ₹679.42 ₹1,119 ₹2,555 72
Growth DCF ₹638.17 ₹1,371 ₹2,602 72
All 26 models by family
DCF Models
FCF DCF ₹679.42 ₹1,119 ₹2,555 72
Owner Earnings ₹18.46 ₹94.29 ₹260.61 63
5Y Revenue Exit ₹324.16 ₹536.31 ₹975.94 67
5Y EBITDA Exit ₹494.43 ₹880.72 ₹1,637 69
5Y P/E Exit ₹588.28 ₹1,346 ₹2,377 65
10Y Revenue Exit ₹420.62 ₹848.15 ₹1,081 64
10Y EBITDA Exit ₹557.73 ₹1,223 ₹2,363 62
10Y P/E Exit ₹627.78 ₹1,430 ₹2,744 58
Earnings-Based
Graham-Dodd ₹302.85 ₹2,112 ₹2,964 61
Lynch FV ₹1,091 ₹1,559 ₹2,026 59
PEG = 1.0 ₹1,091 ₹1,559 ₹2,026 55
EPV best evidence ₹315.00 ₹377.29 ₹432.67 74
Dividend Discount
Gordon GGM ₹327.11 ₹714.14 ₹1,202 63
DDM Multi-Stage ₹327.11 ₹585.00 ₹744.25 64
Multiples
P/E Multiple ₹567.85 ₹757.14 ₹946.42 63
P/S Multiple ₹225.98 ₹301.31 ₹376.64 58
P/B Multiple ₹235.27 ₹313.70 ₹392.12 55
EV/EBIT ₹457.58 ₹622.77 ₹787.97 66
EV/EBITDA ₹408.37 ₹557.16 ₹705.95 67
EV/Revenue ₹172.91 ₹263.31 ₹353.70 53
Asset-Based
NCAV (Graham) ₹52.28 ₹70.06 ₹104.57 54
Growth DCF
Growth DCF ₹638.17 ₹1,371 ₹2,602 72
Rev-Margin DCF ₹358.72 ₹619.99 ₹1,171 67
Economic Profit
Residual Income ₹290.31 ₹342.11 ₹1,728 61
ROIC Compounder ₹456.65 ₹793.41 ₹1,065 68
Growth Earnings
Growth-Adj P/E ₹1,342 ₹1,918 ₹2,493 65

Widest divergence: Growth Earnings (₹1,918) versus Asset-Based (₹70.06). Highest evidence: EPV (74).

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Key figures & financial health

P/E ratio 15.5
P/S ratio 3.43 P/E × margin
EPS (TTM) ₹17.61 price ÷ EPS = P/E 15.5
Dividend yield 12.5% payout 193%
Net margin 22.2% FY2026
Return on equity 20.4% TTM
More key figures
Profitability
Return on assets (EBIT) 29.0% avg 5y
Operating margin 33.9% TTM
Growth
Revenue (TTM) ₹769B TTM
Revenue growth (YoY) −41.3% 3y avg −18.7%
EPS growth (YoY) +92.2%
Balance sheet & cash flow
Free cash flow ₹157B FY2026
Net debt ₹292B FY2026 · ≈ 1.9 yrs of FCF

Figures from reported company fundamentals · as of Aug 25, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 53/100

Of which business quality 51 · Market factors (momentum, volatility) 21

Profitability 58
Margins and returns on capital today
Quality Growth 36
Are margins and returns improving?
Cashflow 74
Earnings quality: real cash, not paper profit
Fin. Strength 19
Balance sheet, leverage, solvency risk
Investment 55
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 12
Price trend over the last 3–12 months (market factor)
52W Momentum 2
Distance to the 52-week high (market factor)
Net Issuance 66
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

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 operates through seven reportable segments: Copper, Iron Ore, Power, Zinc India, Zinc International, Oil and Gas, and Others.

Full company description

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 operates through seven reportable segments: Copper, Iron Ore, Power, Zinc India, Zinc International, Oil and Gas, and Others. It explores, produces, and sells oil and gas, zinc, lead, silver, copper, aluminum, steel, pig iron, chrome ores, and metallurgical coke. The company 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; a 1,000 MW coal-based power plant at Nellore, Andhra Pradesh; and power plants located at Mettur Dam in the state of Tamil Nadu in southern India. 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, display glass panels, 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, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Vedanta Limited reported revenue of ₹784B in FY2026 versus ₹1.3T in FY2022, a compound −12.1%/yr. Reported net income was ₹174B in FY2026, compounding −1.9%/yr from FY2022.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
₹784B
Latest YoY
−48.2%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−18.7%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−2.1%
Avg. revenue growth/yr (21Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+20.8%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+14.1% (1.6 + 12.5)
Revenue −12.1%/yr
FY22 ₹1.3T
FY23 ₹1.5T
FY24 ₹1.4T
FY25 ₹1.5T
FY26 ₹784B
Net income −1.9%/yr
FY22 ₹188B
FY23 ₹106B
FY24 ₹42.4B
FY25 ₹150B
FY26 ₹174B

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Cite: Fair Value Calculator (2026). "Vedanta Limited Fair Value". https://www.fairvalue-calculator.com/stock/VEDL

Peer Group

Other Industrial Metals & Mining · 469 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 53 · Top 25%
Fair Value upside +11% · Top 25%
Return on equity (TTM) 20% · Top 25%
Return on assets 5% · Top 25%
Net margin (TTM) 23% · Top 25%
Operating margin (TTM) 34% · Top 25%
Revenue growth −41% · Bottom 25%
Dividend yield (TTM) 12.5% · Top 25%
Debt / equity 0.40× · Higher than 75% of peers

Valuation Multiples vs Other Industrial Metals & Mining median · lower = cheaper

P/E (TTM) 15.5× · Cheaper than median
P/B 2.42× · Pricier than median
P/S (TTM) 1.29× · Cheaper than median
P/FCF 0.1× · Cheaper than 75% of peers
EV/EBITDA 4.1× · Cheaper than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE49 · sector 0
FUTURE0 · sector 38
PAST82 · sector 0
HEALTH80 · sector 96
DIVIDEND100 · sector 38

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Other Industrial Metals & Mining stocks, each showing price versus our Fair Value estimate (as of Aug 25, 2026).

Stock Price Fair Value vs Fair Value
BHP Group BHP A$66.84 A$42.16 −37%
Vale S.A VALE $15.31 $8.95 −42%
Saudi Arabian Mining Company 1211 65.50 SAR 33.87 SAR −48%
CMOC Group 603993 ¥18.42 ¥16.15 −12%
Teck Resources Limited TECK $69.34 $32.02 −54%
Hindustan Zinc Limited HINDZINC ₹573.00 ₹508.34 −11%
China Tungsten And Hightech Materials Co 000657 ¥66.76 ¥9.55 −86%
China Northern Rare Earth (Group) High-Tech Co 600111 ¥41.02 ¥10.59 −74%
Western Mining Co 601168 ¥37.85 ¥25.99 −31%
Boliden AB BOL kr 527.80 kr 461.48 −13%

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Frequently asked questions

Is Vedanta Limited (VEDL) overvalued or undervalued?
As of Aug 25, 2026, our model estimates a fair value of ₹303.09 versus a price of ₹272.10, about +11% upside (undervalued).
What is the fair value of VEDL?
Our model-based fair value for Vedanta Limited is ₹303.09 (as of Aug 25, 2026), built from audited fundamentals. The current price: ₹272.10.
What is the quality score of VEDL?
Vedanta Limited has a Quality Score of 53/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Vedanta Limited (VEDL)?
Vedanta Limited reported trailing-twelve-month revenue of about ₹767B (latest available figure, as of Aug 25, 2026).
What is the net profit margin of VEDL?
The net profit margin of Vedanta Limited is about 22.7%, meaning it keeps roughly 22.7% of revenue as net income. Based on the latest reported figures.
Does Vedanta Limited pay a dividend?
Vedanta Limited currently shows a dividend yield of about 12.50% relative to its recent price (as of Aug 25, 2026).
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