Demerger-Bound Vedanta Tops Dividend Charts In FY25 — Should You Buy, Sell Or Hold?

Vedanta Ltd. is back in the spotlight with two 'buy' calls on Monday, amid a recent approval by its board to raise up to Rs 5,000 crore through non-convertible debentures. This move aims to shore up liquidity ahead of the company's expected business demerger by September.

Dividend Magnet

Investors seeking dividend yields may find Vedanta hard to ignore. It currently leads the market in dividend income, offering a hefty 9.5%, thanks to a strong fiscal payout of Rs 13,474 crore. Over the past five years, Vedanta has built a solid track record of rewarding shareholders.

The company's March-quarter net profit came in at Rs 3,483 crore, slightly down from Rs 3,547 crore in the previous quarter, but in line with market expectations.

Analysts Stay Bullish

Technical analysts are upbeat on the counter on Monday. Shrikant Chouhan of Kotak Securities has a buy rating with a target of Rs 475 and a stop loss at Rs 434. Vaishali Parekh of Prabhudas Lilladher echoes the sentiment, suggesting a buy at Rs 448, with a stop loss at Rs 435 and a target of Rs 470.

Brokerage firm Investec continues to favour Vedanta in the non-ferrous metals space, highlighting multiple triggers ahead. These include a potential upside from strong dividend payouts, the upcoming demerger, and volume-linked cost advantages. That said, it urges investors to monitor developments around Guinea bauxite licences and alumina price movements closely.

Systematix also maintains a buy call, citing Vedanta's diversified base across aluminium, zinc, and copper as key earnings drivers, despite challenges in its oil and gas segment. The brokerage sees the company's expansion and efficiency efforts cushioning volatility in commodity markets.

Eleven out of 16 analysts tracking the stock as per Bloomberg data remain bullish, with a 'buy' or accumulate' call. The highest target price on the counter stands at Rs 607, by Nuvama Institutional Equities.

With dividend strength, structural triggers like the upcoming demerger, and continued backing from top brokerages, Vedanta could be a 'buy', state brokerages. However, they warn investors to keep tabs on global commodity trends and regulatory developments, especially in bauxite sourcing.

Vedanta Share Price Today

The scrip rose as much as 2.98% to Rs 461.40 apiece, the highest level since April 1. It pared gains to trade 2.06% higher at Rs 457.30 apiece, as of 01:20 a.m. This compares to a 0.42% advance in the NSE Nifty 50 Index.

It has risen 2.95% on a year-to-date basis but has fallen 0.63% in the last 12 months. The relative strength index was at 40.03.

The average 12-month consensus price target for the counter by Bloomberg analysts is Rs 512.93, which implies an upside of 12.1% from the last regular trade.