Stock Analysis: Vedanta Ltd

Hi All - My today's analysis is rather on a large-cap company instead of a small cap. Its none other than Vedanta.

Vedanta
- Market Cap 80K Cr
- Current price - 214.3
- 52 Wk H/L : 355/197


About the company- Owned majorly by Vedanta Resources, a metal, mining, power, and oil-and-gas company- Vedanta Resources holds 50.1% stake in Vedanta- The group's copper, iron ore, aluminium assets at Jharsuguda and Lanjigarh in Odisha and power divisions (2400-MW and 1215-MW captive power plants for the aluminium business), are in Vedanta. The group also has aluminium operations through Balco.- The copper business comprises mining and smelting operations in Zambia.

Key Financial Indicators: ParticulaRs. Unit 2018 2017 Revenue Rs. Cr. 92,975  73,091 Profit After Tax Rs. Cr. 13,692 11,316 PAT Margins % 14.7 15.5 Adjusted Debt/Adjusted Net worth Times 1.3 1.7 Interest coverage Times 5.7 4.4

Key features which actually makes this company extremely attractive at this share price

(i) Promoter holding is > 50% ... its 50.14% as per the latest shareholding statement
(ii) Current price of 214 is almost a 40 % correction to its 52 week high of 355 . The company fundamentals have only improved post its acquisition of Electro steel (90% stake ) while continuous growth in the profitability. It's just a matter of time before it goes back to its previous levels.
(iii) The complete portion of the company holding is unpledged.
(iv) Price to earning is just 6.55 which is almost 1/2 of its closest peer of Hind Zinc of 13 which again is pretty cheap on how the company has been performing.
(v) The company has a dividend yield of ~10% which is extremely good in current market conditions.
(VI) The company has good consistent profit growth of >25% over last 5yrs and its expected to keep growing at CARG of 25% for next 2-3yrs at least more.

With all the above features and good growth aspects in mind - do you think the above price justify an investment in this company? i think the answer is Yes.

Note: I am not a SEBI registered research analyst. I have an investment in this company around the current market price so my views might be biased.