Vedanta Limited - Future Natural Resource Leader

Vedanta’s Debt has been going down fast and furious. If we see that almost 90% debt is rupee denominated debt and rupee is declining while thier metals are priced in USD so one more tail wind if rupee keep getting weaker. They have payed 30 rp per share as div in last 2 months with 70% stake with vadanta resources now those div will reduce debt at the parent. One more year of these commodity prices and a rerating is certainity due to huge jump in bookvalue as a result of debt reduction.


Sold out entirely during the middle of 2021 for a small profit after holding for many years.
My Reasons
• I am moving out of Capital intensive, Cyclical mining stocks though the dividend yield is attractive.
• Promoter likes using heavy debt to turnaround loss making companies like Videocon.
• The delisting proposal in FY 21 was not fair to me as the company was trying to delist at a low price.
• Poor ROE for last 10 years of 2%.

Thanks VP for everything. I am not tracking this company anymore.


Good addition…

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promoter looks keen to take their stake to 75%

Noob to the market and New to the forum here, so please bear with me.

Vedanta has pledged 100% promoter holding. As per the books, pledging is not a good sign (ofcourse it depends when… bull Vs bear market). Isn’t this a concern? How do you guys see this?

Disclaimer: I have invested in Vedanta.

Rating upgrade…

The promoters of Vedanta are becoming more and more untrustworthy. They keep changing their tactics that only suits their interests and the holding company. Firstly a merger of Sesa Goa, Cairn into Vedanta which eroded the wealth of many minority stakeholders, then talking about relisting them as individual entities and now scraping the plan altogether. At least, we can now hope they stick to the new story of distributing 30% of revenue as dividend.

Disc invested and slowly exiting my position on every rise


seems market is pricing in imparement…writedown ?

I wanted to confirm whether the chip foray is by Vendata Resources or by the listed entity Vedanta Limited?

Mint article mentions that Vedanta subsidiary Avanstrate is the partner in the JV with Foxconn. And Avanstrate website says that it is a subsidiary of Crain India.

Chip foray is by Vedanta Group and nothing to do with the listed entity of Vedanta limited. Anil Agarwal has mentioned this in one of the earlier interviews. I could not get the link of that interview but you can get an idea about existing glass manufacturing capabilities which will be leveraged for the fabrication unit.


Board approved dividend of Rs.19.5 per share.


Semiconductor JV with Foxconn is not by listed entity.
Vedanta to distribute all reserves as dividends.

Promoter is not minority shareholder friendly.

Disc: Have a good position in portfolio built quite before failed open offer buyback. Ever since reducing at opportune times.

promoter is sucking all cash from the business as dividend to the private UK entiry… supposidly for the chips adventure istead of paying down debt… :disappointed:

Disclosure: I have exited this totally yesterday…

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A big hangover of the Indian listed company is the high debt of the privately listed holding company. I think the continuous payment of dividends and reduction in private debt removes the problem. It is better that they are paying dividends rather than just piling it on in low-return debt instruments like NMDC.

It is not as if they are not expanding their capacities. They are increasing their alumina capacity from 2 MT to 6 MT and aluminum from 2.2 MT to 3 MT. They are also increasing their captive coal resources by 15 MT.


Discl: This has been a part of my basket of high Dividend yield stocks which include several PSU stocks !