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Vedanta Limited (VEDL) Fair Value & Analysis

Basic Materials · IN · Market cap ₹988B

VL Vedanta Limited VEDL · NSE
Price₹275.00
Fair Value₹303.09
Upside+10.2%
Quality43/100
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Weak Growth
Highly profitable · 22.6% net margin
Low debt · generates free cash flow
13.18% dividend yield
Ranks above peers (11/14)
Wide moat 75/100
Evidence: Medium Range ₹216.43 – ₹1,212 Share as image

Fair value as of: Jul 18, 2026

From 26 valuation models · updated 20 days ago

Fair value updated Jul 18, 2026, revised from ₹520.36 to ₹303.09 (−41.8%) since Jun 24, 2026.

Below-average quality, screening 10% undervalued on our models.

What matters now

  • The model range is unusually wide (₹216.43 to ₹1,212). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Our model range runs from ₹216.43 (bear) to ₹1,212 (bull), base ₹303.09. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 43/100 (below-average quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (5 years)

₹787.50 ₹102.17 Fair Value ₹303.09 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range ₹102.17 – ₹787.50 · fair‑value band ₹216.43 – ₹1,212 · the ₹275.00 price screens below the ₹303.09 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

Vedanta Limited (VEDL) currently trades at ₹275.00, while our model-based Fair Value estimate is ₹303.09, implying the stock looks roughly 10.2% undervalued today. We read business quality at 43/100 (below-average quality), in the Basic Materials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

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 Jul 18, 2026

Our scenario range runs from ₹216.43 (bear case) to ₹1,212 (bull case); at ₹275.00, 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 65% below its 52-week high and 2% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -34% fair-value upside, at 10%, 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 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.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ₹638.17 ₹1,371 ₹2,602 80
Residual Income ₹290.31 ₹342.11 ₹1,728 76
Rev-Margin DCF ₹489.29 ₹888.68 ₹1,726 74
All 26 models by family
DCF Models
FCF DCF ₹679.42 ₹1,119 ₹2,555 38
Owner Earnings ₹18.46 ₹94.29 ₹260.61 31
5Y Revenue Exit ₹440.55 ₹771.74 ₹1,463 39
5Y EBITDA Exit ₹597.88 ₹1,090 ₹2,055 41
5Y P/E Exit ₹665.70 ₹1,546 ₹2,747 38
10Y Revenue Exit ₹500.81 ₹1,105 ₹1,475 36
10Y EBITDA Exit ₹634.95 ₹1,451 ₹2,872 37
10Y P/E Exit ₹685.56 ₹1,601 ₹3,111 35
Earnings-Based
Graham-Dodd ₹302.85 ₹2,112 ₹2,964 54
Lynch FV ₹1,091 ₹1,559 ₹2,026 50
PEG = 1.0 ₹1,091 ₹1,559 ₹2,026 46
EPV ₹315.00 ₹377.29 ₹432.67 59
Dividend Discount
Gordon GGM ₹327.11 ₹714.14 ₹1,202 70
DDM Multi-Stage ₹327.11 ₹585.00 ₹744.25 61
Multiples
P/E Multiple ₹668.06 ₹890.75 ₹1,113 63
P/S Multiple ₹376.64 ₹502.18 ₹627.73 58
P/B Multiple ₹235.27 ₹313.70 ₹392.12 55
EV/EBIT ₹599.18 ₹811.57 ₹1,024 53
EV/EBITDA ₹542.28 ₹735.71 ₹929.14 54
EV/Revenue ₹313.53 ₹464.18 ₹614.84 43
Asset-Based
NCAV (Graham) ₹52.28 ₹70.06 ₹104.57 50
Growth DCF
Growth DCF ₹638.17 ₹1,371 ₹2,602 80
Rev-Margin DCF ₹489.29 ₹888.68 ₹1,726 74
Economic Profit
Residual Income ₹290.31 ₹342.11 ₹1,728 76
ROIC Compounder ₹456.65 ₹793.41 ₹1,065 72
Growth Earnings
Growth-Adj P/E ₹1,406 ₹2,009 ₹2,611 68

Widest divergence: Growth Earnings (₹2,009) versus Asset-Based (₹70.06). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) ₹769B
Revenue growth (YoY) -41.3%
Net margin 22.6%
Return on equity 20.4%
Free cash flow ₹157B FY2026
P/E ratio 14.4
More key figures
Operating margin 33.9%
EPS (TTM) ₹17.61
Dividend yield 13.2%
EPS growth (YoY) +92.2%
Net debt ₹292B FY2026

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 43/100

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 13
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.

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. growth/yr (3Y)
−18.7%
Avg. growth/yr (5Y)
−2.1%
Avg. growth/yr (21Y)
+20.8%
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 · 477 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 43 · Above median
Fair Value upside +10% · 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) 13.2% · Top 25%
Debt / equity 0.40× · Higher than 75% of peers

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

P/E (TTM) 14.4× · 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

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.

VALUE 47 · sector 0
FUTURE 0 · sector 23
PAST 82 · sector 0
HEALTH 80 · sector 96
DIVIDEND 100 · sector 23

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Other Industrial Metals & Mining stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
BHP Group BHPN 1,425 MXN 942.42 MXN -34%
Rio Tinto Group RIO A$164.89 A$81.76 -50%
Grupo México, S.A. GMEXICOB 199.23 MXN 187.72 MXN -6%
Vale S.A VALE $14.19 $9.14 -36%
Saudi Arabian Mining Company 1211 58.05 SAR 33.87 SAR -42%
CMOC Group 603993 ¥18.20 ¥16.15 -11%
Fortescue Ltd FMG A$18.47 A$18.62 +1%
China Tungsten And Hightech Materials Co 000657 ¥74.71 ¥9.55 -87%
Hindustan Zinc Limited HINDZINC ₹521.95 ₹576.80 +11%
China Northern Rare Earth (Group) High-Tech Co 600111 ¥39.56 ¥10.59 -73%

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Frequently asked questions

Is Vedanta Limited (VEDL) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of ₹303.09 versus a price of ₹275.00, about +10% (undervalued).
What is the fair value of VEDL?
Our model-based fair value for Vedanta Limited is ₹303.09 (as of Jul 18, 2026), built from audited fundamentals. The current price is ₹275.00.
What is the quality score of VEDL?
Vedanta Limited has a Quality Score of 43/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals 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 Jul 18, 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 10.38% relative to its recent price (as of Jul 18, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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