Shares of this large-cap company, which operates across metals, oil and gas, and power generation sectors, rose 5 percent on Wednesday after it issued strong management guidance and set a target of 11 million tons per annum in iron ore production by FY25.
Price Variation
During Wednesday’s trading session, the Vedanta Ltd share price surged 2.4 percent to a 52-week high of Rs.526.60 per share, up from its previous close of Rs.514.35 apiece. The price has since retreated and is currently trading at Rs.523.75 per share. Vedanta Ltd has a dividend yield of 6.75 percent and a high dividend payout ratio of 259 percent.
Management Guidance
Vedanta Ltd has expressed confidence in meeting its FY ’25 production goals, which include reaching 11 million tons per annum from its iron ore business. The company is actively progressing towards these targets, with its subsidiary, Hindustan Zinc, reporting strong performance in the second quarter, producing 2,56,000 tons of mined metal and 2,62,000 tons of refined metal.
In addition to its iron ore operations, Vedanta is focused on expanding its BALCO smelter and boosting aluminum production. The company aims to achieve a capacity of 3.1 million tons per annum, with 90 percent of the output coming from value-added products by FY ’26. These efforts are part of Vedanta’s broader strategy to strengthen its position in the metals and mining sector.
Business Segments and Presence
Vedanta operates across a wide range of sectors, with a primary focus on metals, including aluminum, copper, zinc, lead, and iron ore. The company is also engaged in oil and gas exploration and production, as well as commercial power generation.
In addition to these core activities, Vedanta is involved in the production of pig iron and metallurgical coke, along with providing shipping and port services. The company has a significant presence in India and various regions globally, including the US, Asia-Pacific, Europe, the Middle East, and Africa.