This large metal company, which is into exploring, extracting, and processing minerals, gas, and oil went up by 2% in the day’s trade after winning a contract for Critical Mineral Blocks from the Ministry of Mines.
Price Movement
In Friday’s trading session, Vedanta Limited stock was up by 2 percent in the day’s trade after winning a contract for Critical Mineral Blocks from the Ministry of Mines. The stock has delivered a return of around 92 percent in the past year and outperformed Nifty in the same period. The stock reiterated from the day’s high of Rs. 467.70 and was trading at Rs. 456.80 which is 0.22 percent down from the previous closing price of Rs. 457.80 per share.
What happened
Vedanta was selected as the preferred bidder from the Ministry of Mines, Government of India of Critical Mineral Block through auctions and had invited tenders in respect of Depo Vanadium and Graphite Block in the State of Arunachal Pradesh and Sanyasikoppa Cobalt, Manganese, and Iron Block in the State of Karnataka. Vedanta had participated in the live e-auction for the grant of the stated Composite Licenses
As per the MSTC e-commerce auction portal, the Company said that they have been declared for the Graphite Block and Depo Vanadium with the highest final price offer of 2.55 percent and Sanyasikoppa Cobalt, Manganese, and Iron Block with the highest final price offer of 45.00 percent.
The tender document, the Depo Vanadium and Graphite Block with a total area of 104.65 hectares for the block, and the Sanyasikoppa Cobalt, Manganese, and Iron Block with a total area of 1055.64 hectares for the block.
Financial Performance
Their Q1FY25 results show revenue from operations of Rs. 35,764 crore which increased by 6 percent year on year, from Rs. 33,733 crore in Q1FY24 and a 0.71 percent increase from Rs. 35,509 crore in Q4FY24. Their net profit decreased by 54 percent year on year, from Rs. 3,308 crores in Q1FY24 to Rs. 5,095 crores in Q1FY25. Quarterly, the profits were up 124 percent from Rs. 2,275 crore.
The return on equity in FY24 stood at 10.69 percent declining from 22.74 percent a year ago. The debt-to-equity ratio was 2.4 times which has decreased from 1.15 times in FY23. However, the return on capital employed has stood at 17.59 percent which has declined from 19.89 percent in FY23.
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Revenue Segment
According to the company’s June 2024 released quarterly report, they considered revenue from Zinc, Lead, and silver contributes around 22.19 percent, Zinc (International) – 2.12 percent, Oil and Gas – 8.27 percent, Aluminium – 38.22 percent, Copper – 13.3 percent, Iron Ore – 3.73 percent, Power – 3.73 percent and others – 7.27 percent in Q1FY25.
Shareholding Pattern
As of September 2024, the shareholding pattern includes promoters holding a major share of 56.38 percent stake in Vedanta, Foreign Institutional Investors (FII) holding around 11.45 percent, Domestic Institutional investors (DII) standing at 16.29 percent, Government holding 0.07 percent, public holdings standing at 15.64 percent and others – 0.16 percent.
About the company
Vedanta Limited is a leading global natural resources and technology conglomerate based in India that focuses on the extraction and processing of minerals and energy resources.
Their business model concentrated on diverse sectors, including oil and gas, lead, zinc, aluminum, silver, copper, iron ore, and power generation.
Written by Santhosh S
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