Vedanta - Well Positioned; Focus On Structural Cost Rationalisation To Drive Earnings: Motilal Oswal

The capex plans are progressing well to drive the next level of growth for the company.

Signage of Vedanta outside its office building (Source: Vijay Sartape/NDTV Profit) 

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Motilal Oswal Report

Vedanta Ltd.’s site visit highlights that the company is operating with a technologically advanced asset base. Vedanta is continuously striving to reduce costs across its businesses through backward integration, operational efficiencies, and captive power usage (including renewables).

The capex plans are progressing well to drive the next level of growth for the company.

Vedanta currently trades at 5.8 times FY26E enterprise value/Ebitda. We raise our Ebitda estimates by 20%/23% for FY25/26, considering the various cost-reduction initiatives being undertaken by the management. We reiterate our Neutral rating on Vedanta with a revised SoTP-based target price of Rs 500.

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Motilal Oswal Vedanta Update.pdf
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