Vedanta Limited – A company that was once considered a ‘gold mine’ in investors’ portfolio. But now that the company is distributing record dividend, the price of its share remains almost stable. In such a situation, the question arises – is this dividend part of a financial strategy? Is the company hiding debt? Or is there a big corporate action coming out?
In this report, know the full story of Vedanta’s profits and deficit, the strategy of investors and the facts to the future of the company and with seo friendly analysis.
Vedanta Limited is called ‘Dividend King’ in the stock market, and this title also seems correct. The company’s dividend yield is 8.61%, which is more than the market average.
Although dividends are being distributed, a heavy debt of ₹ 53,251 crore is still remained on the company. Stability in the stock and low volatility have forced investors to think.
Two major decisions of Vedanta are making confusion in front of investors:
Analysts are of the opinion that if the company focused on repaying the debt instead of dividend, the share status could have been stronger.
It is clear that Vedanta has performed weakly with both her sector and benchmark. H1cy25 saw a boom in metal stocks, but Vedanta could not recover due to the decline of H2cy24.
The company has decided to divide businesses such as aluminum, oil and gas, power and steel into separate units.
But until this process is complete, the investors’ strategy is – “Weight and Watch”.
This simply means that the stock is still near the resistance level, and a big movement will come only when there will be a change in a solid corporate action or commodity market.
