Vedanta Group, which includes Vedanta Ltd and Hindustan Zinc Ltd, has brought significant wealth to investors on Dalal Street this fiscal year. Together, the two companies’ market value has increased by ₹2.2 lakh crore from March 28 to June 20, 2024, based on stock exchange data.
This increase in market value is higher than that of big names like Reliance Industries, Mahindra Group, and Tata Group during the same period. The share prices of Vedanta and Hindustan Zinc have doubled from their 52-week lows, driven by positive factors such as a proposed company split, management’s focus on reducing debt, and improved earnings.
In comparison, the Adani and Mahindra groups each saw their market cap rise by ₹1.4 lakh crore. The Tata Group’s market cap went up by over ₹60,600 crore, while Reliance Industries’ market value dropped by more than ₹20,656.14 crore during this period.
On June 20, Vedanta Ltd announced it will raise ₹1,000 crore by issuing non-convertible debentures (NCDs). This decision was made during a board meeting. The company will issue 1 lakh debentures, each with a face value of ₹1 lakh. These debentures are secured, rated, listed, redeemable, and will be traded on the BSE.
Vedanta – Key Financial Metrics
Vedanta reported its second-highest-ever revenue of ₹1,41,793 crore and an EBITDA of ₹36,455 crore in FY24, with a 30% EBITDA margin despite a moderate commodity market.
The company has a strategic plan to achieve an EBITDA of $10 billion soon. This is supported by over 50 high-impact growth projects in zinc, aluminium, oil & gas, and power businesses. Foreign institutional investors increased their holdings in Vedanta to 8.77% at the end of the March quarter, up from 7.74% a quarter earlier.
Analysts say the strengthening of commodity prices, combined with the benefits of cost optimization initiatives starting from FY25, will boost Vedanta’s profitability.
On May 22, Vedanta and Hindustan Zinc stocks reached their all-time highs of ₹506.85 and ₹807, respectively. On Thursday, Vedanta shares jumped 4.86% to ₹470.25, while Hindustan Zinc rose 2.29% to ₹647.65 on the BSE.
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