Vedanta Share Price Target 2023, 2024, 2025, 2027, 2030, and Prediction

This post was most recently updated on September 23rd, 2023

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Vedanta Limited is one of the largest diversified natural resources companies in India, with interests in oil and gas, zinc, lead, silver, copper, iron ore, aluminum, and power. The company has operations in India, South Africa, Namibia, Ireland, Australia, and Liberia. In this article, we will look at Vedanta Share Price Target 2023, 2024, 2025, 2027, 2030.

Vedanta Share Price Target 2023, 2024, 2025, 2027, 2030, and Prediction
Vedanta Share Price Target 2023, 2024, 2025, 2027, 2030, and Prediction

Vedanta is listed on the National Stock Exchange of India and the Bombay Stock Exchange, with a market capitalization of over Rs 1 lakh crore as of September 2023.

In this blog post, we will also analyze Vedanta’s performance, prospects, and challenges for the year 2023 and beyond.

Consider reading: SJVN Share price target

Vedanta Share Price Target 2023, 2024, 2025, 2027, 2030

YearMinimum Price TargetMaximum Price TargetAverage Price Target
Vedanta Share Price Target 2023, 2024, 2025, 2027, 2030

Vedanta Share Price Chart

Vedanta’s Competitors

Vedanta operates in a highly competitive and cyclical industry, where it faces both domestic and global rivals. Some of the major competitors of Vedanta are:

  • Reliance Industries: The largest private sector company in India, with interests in oil and gas, petrochemicals, telecom, retail, and digital services. Reliance is also the operator of the KG-D6 block, which is adjacent to Vedanta’s RJ-ON-90/1 block in the Krishna-Godavari basin.
  • BHP Group: The world’s largest mining company by market value, with operations in over 10 countries. BHP produces iron ore, copper, coal, nickel, potash, and oil and gas. BHP is also a partner in the Mozambique LNG project, which competes with Vedanta’s gas business in India.
  • Rio Tinto Group: The second-largest mining company in the world by market value, with operations in over 35 countries. Rio Tinto produces iron ore, aluminum, copper, diamonds, gold, and uranium. Rio Tinto is also involved in the Simandou iron ore project in Guinea, which could challenge Vedanta’s iron ore business in India.
  • BP PLC: One of the world’s largest oil and gas companies, with operations in over 70 countries. BP produces oil and gas from conventional and unconventional sources, as well as renewable energy. BP is also a partner in the India Gas Solutions joint venture with Reliance Industries, which aims to source and market natural gas in India.
  • Vale S.A.: The world’s largest producer of iron ore and nickel, with operations in over 30 countries. Vale also produces copper, coal, manganese, ferroalloys, fertilizers, and cobalt. Vale is a competitor of Vedanta in the global iron ore and nickel markets.

Consider reading: Tata Steel Share Price Prediction

Vedanta’s Growth Opportunities

Vedanta is poised for significant expansion across various sectors in the coming years. Here’s a breakdown of the company’s ambitions:

1. Oil and Gas:

  • Status: India’s premier private sector producer, Vedanta’s FY23 stats reveal a production rate of 160 kboepd, leveraging 41 blocks spanning 86 thousand square km.
  • Vision: By FY26, Vedanta aims to double its output to 300 kboepd. With a whopping $8 billion investment planned over the next three years, the company is betting on advanced EOR, explorative drilling, new field development, and further block acquisitions. An additional goal is leveraging the Rajasthan block’s natural gas assets, intending to cater to domestic needs and initiate an LNG terminal at Mundra port.

2. Zinc-Lead-Silver:

  • Status: With a global ranking as the second-largest zinc manufacturer and topping charts in India, Vedanta boasted a production of over 1 million tonnes of zinc-lead metal and 24 million ounces of silver in FY23.
  • Vision: A projected $1 billion investment in this sector aims to boost production to 1.5 million tonnes of zinc-lead metal and 40 million ounces of silver by FY26. This will be achieved by magnifying operations in India and South Africa, scouting for new deposits, and launching projects like the SRCP in Namibia.

3. Aluminum:

  • Status: As India’s foremost aluminum producer and a cost-effective global competitor, Vedanta’s FY23 records show 2 million tonnes of aluminum and 7 million tonnes of alumina production.
  • Vision: An estimated $2 billion investment will target a surge in production to 3 million tonnes of aluminum and 8 million tonnes of alumina by FY26. This entails expanding current operations in India, streamlining bauxite and coal supply chains, and kickstarting new initiatives in Odisha and Gujarat.

4. Iron Ore:

  • Status: Leading the private sector in iron ore production in India, Vedanta generated over 10 million tonnes in FY23 from its Goa, Karnataka, and Liberia bases.
  • Vision: With an allocated investment of $1 billion, the company aims to amplify its output to 15 million tonnes by FY26. This involves rebooting mining in Goa, enhancing Karnataka operations, and launching new ventures in Liberia and India.

5. Power:

  • Status: Vedanta, a power titan with a 9 GW capacity in FY23, conducts operations under Vedanta Power in India and Copperbelt Energy Corporation in Zambia.
  • Vision: An additional $1 billion investment seeks to extend capacity to 12 GW by FY26. Plans include growing the existing Indian power plants, fine-tuning coal supply and purchase agreements, and inaugurating new plants in Jharsuguda and Gujarat.

Differentiating Factors for Vedanta

Vedanta has some unique features that differentiate it from its competitors and give it a competitive edge in the industry. Some of the unique features of Vedanta are:

  • 1. Diverse Offerings: Vedanta’s portfolio covers everything from oil and gas to power, including metals like zinc, lead, and silver. This variety means they’re not tied down to one product or market, allowing them to balance risks and costs effectively.
  • 2. Cost-Efficiency: Vedanta’s operations are a masterclass in cost-saving. With an integrated approach, top-notch tech, and large-scale operations, they’ve consistently kept their production costs down. Here’s a tidbit: their oil and gas production cost was just $6.1 per barrel in FY23, much lower than the industry’s average of over $10.
  • 3. Rock-Solid Finances: With a net debt-to-EBITDA ratio of just 0.8x as of June 2023, Vedanta is on a firm financial footing. This means they’ve got the cash on hand to manage debts and invest in growth. Plus, credit rating agencies have given them a thumbs up, like Moody’s bumping their rating up in July 2023. This speaks volumes about their financial robustness.

Vedanta’s Financials

Here is a quick overview of Vedanta’s financials for the last 5 years:

Financial HeadersMar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Operating Profit23,17120,74327,31844,82434,431
OPM %25%25%31%34%23%
Other Income4,270-14,9322,7431,8322,625
Profit before tax13,560-8,25917,21332,96420,276
Tax %28%43%13%28%28%
Net Profit9,698-4,74415,03223,71014,503
EPS in Rs19.01-17.9331.2150.5828.45
Dividend Payout %99%-22%30%89%357%
Vedanta’s Financials

Here are the highlights of Vedanta’s financials:

  1. Sales Trend:
    • Increased from 92,048 in Mar 2019 to 147,308 in Mar 2023.
    • Significant jump between Mar 2021 and Mar 2022.
  2. Expenses:
    • Grew from 68,877 in Mar 2019 to 112,877 in Mar 2023.
    • Noticeable growth between Mar 2021 and Mar 2022.
  3. Operating Profit:
    • Peaked at 44,824 in Mar 2022 but reduced to 34,431 in Mar 2023.
  4. Operating Profit Margin (OPM %):
    • Improved from 25% in Mar 2019 to a high of 34% in Mar 2022, then decreased to 23% in Mar 2023.
  5. Other Income:
    • Experienced a huge dip in Mar 2020 at -14,932, but generally stayed positive in other years.
  6. Interest and Depreciation:
    • Interest costs relatively stable, slightly increasing to 6,225 in Mar 2023.
    • Depreciation has been growing over the years, reaching 10,555 in Mar 2023.
  7. Profit Before Tax:
    • Recorded a loss in Mar 2020 at -8,259, but showed good recovery in subsequent years, hitting a high of 32,964 in Mar 2022.
  8. Tax %:
    • Generally stable at 28%, except for a dip to 13% in Mar 2021 and a spike to 43% in Mar 2020.
  9. Net Profit:
    • Recovered from a loss of -4,744 in Mar 2020 to a peak of 23,710 in Mar 2022, before reducing to 14,503 in Mar 2023.
  10. Earnings Per Share (EPS):
    • Recovered from a negative value in Mar 2020 (-17.93) to reach its highest at 50.58 in Mar 2022.
  11. Dividend Payout %:
    • High variability over the years, with an extraordinary 357% in Mar 2023.

In essence, Vedanta showed resilience and recovery from Mar 2020’s downturn, reaching significant heights in Mar 2022, although some metrics like the operating profit and net profit experienced a decrease in Mar 2023.

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Vedanta’s Risks

Vedanta, like many large corporations, isn’t immune to risks. Here’s a snapshot of the main challenges they could face:

  1. Commodity Prices Fluctuate:
    • Vedanta’s earnings largely depend on commodity prices.
    • Factors like global economics, political events, and exchange rates can sway these prices.
    • Big drops in prices might dent Vedanta’s profits and cash on hand.
  2. Regulatory Hurdles:
    • Vedanta needs multiple clearances from different regulatory bodies.
    • Delays, denials, or policy changes can disrupt their business.
    • For example, due to legal issues, their mining in Goa and a smelter in Tuticorin have been on hold since 2018.
  3. Legal Battles:
    • Vedanta is tangled in legal disputes with various stakeholders, from the government to contractors.
    • Losing these could mean heavy fines or even loss of critical assets.
    • They’re currently grappling with a massive tax claim from the Indian government, which is still in the arbitration phase.
  4. Operational Glitches:
    • Their operations can face disruptions, ranging from technical failures to environmental mishaps.
    • These can hamper production, affect their reputation, or escalate costs.
    • A case in point: a fire broke out at their Rajasthan oil and gas terminal in May 2023, leading to a brief production halt.

In essence, while Vedanta has its strengths, it needs to navigate these potential pitfalls carefully in the upcoming year.

Consider reading: PNB Share Price Target

Vedanta’s Outlook

Here’s why Vedanta is bullish about the upcoming years:

  1. Booming Demand:
    • Global economic recovery post-COVID and the rise of the Indian economy mean more demand for Vedanta’s offerings.
    • The shift towards green energy and higher metal consumption also bodes well for them.
  2. Rising Prices:
    • Vedanta anticipates better prices for its products due to:
      • A favorable balance between demand and supply.
      • The Indian rupee’s depreciation versus the US dollar.
      • Inflation affecting input costs and certain geopolitical events.
  3. Smarter Spending:
    • Vedanta aims to cut production costs through:
      • Digital solutions, automation, and innovation.
      • Improving efficiency, reducing waste, and adding value.
    • Plus, they’ll likely gain from India’s reduced interest and tax rates.
  4. Investing in Growth:
    • They plan to pump over $12 billion into their businesses in the next three years. This will:
      • Boost production capacity by over 50%.
      • Increase resources by over 30%.
      • Add variety to their product range by over 20%.
    • They’re also on the lookout for strategic acquisitions and partnerships to grow further.

In a nutshell, with these strategies, Vedanta is positioning itself for a promising future.

Final Thoughts on Vedanta Share Price Target 2023, 2024, 2025, 2027, 2030

In wrapping up, Vedanta stands out as a heavyweight in India’s natural resources sector and is recognized for its global footprint and cost-effective production. Their portfolio is a diverse mix, from energy sources like oil and gas to metals including zinc and aluminum.

While they boast a sturdy balance sheet and a commendable dividend approach, challenges such as volatile commodity prices and regulatory issues are on their radar.

However, as we gaze into 2023 and further, Vedanta’s horizon seems bright. With indicators pointing towards robust demand, favorable pricing, strategic cost management, and significant investments, Vedanta’s share price target is certainly one to watch.

We have done a detailed analysis of the Vednat stock and arrived at Share Price Target 2023, 2024, 2025, 2027, 2030 and predictions. Investors are advised to proper research and consult their financial advisor before making any financial decisions.

This blog post has provided a comprehensive analysis of Vedanta Stock for 2023. We hope you find it informative and useful. Please share your feedback and comments below.

FAQs on Vedanta Share Price Target 2023, 2024, 2025, 2027, 2030

What is Vedanta Share Price Target 2023?

For the year 2023, the minimum Vedanta Share price target is ₹220, the maximum price target is ₹280, and the average price target is ₹250.

What is Vedanta Share Price Target 2024?

For the year 2024, the minimum Vedanta Share price targett is ₹275, the maximum price target is ₹350, and the average price target is ₹313.

What is Vedanta Share Price Target 2025?

For the year 2025, the minimum Vedanta Share price target is ₹344, the maximum price target is ₹438, and the average price target is ₹391.

What is Vedanta Share Price Target 2030?

For the year 2030, the minimum Vedanta Share price target is ₹1,049, the maximum price target is ₹1,335, and the average price target is ₹1,192.

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