VEDANTA

Vedanta Limited is an Indian multinational mining company headq

and aluminium mines in Goa, K

Presented by:

Shiva Mahajan
Shweta Prabhu
Pratham Ranawat
Milee Bhambani
 VEDANTA LIMITED
mining company headquartered in Mumbai, India, with its main operations in iron ore, gold
minium mines in Goa, Karnataka, Rajasthan and Odisha.
ns in iron ore, gold
Economic Analysis
Population
Performance of Agriculture
The Mines and Minerals (Regulation and Development) Act, 1957 (MM
as to provide for the regulation of mines and development of minerals
Government Policies Act has been amended in 1972, 1986, 1994 and 1999 in keeping with c
development.

Balance of Trade N/A

Political Stability N/A
If mining industry continues to grow our dependency of demand on oth
Exchange Rates import will reduce thus our currency will get appreciated

Natural resources contribute 1.75% to India’s GDP, whereas in countries

7.5%. According to a International Finance Corporation (IFC) report, Ved
GDP India’s gross domestic product (GDP).

Inflation drove cost increases in the 5% range during the recent quarter,
executives. "For the operators, inflation, supply chain and labor are all gr

Inflation
Disposable Income N/A

Industry Analysis

Nature of Competition Highly Competitive

Vedanta is home to thousands of skilled professionals, who seek

employee-friendly, diverse, and meritocratic environment. They
Labour Conditions partners during the year. They also focused on telemedicine, pro
remained safe and secure during these trying times.
 Revenue for the year was `86,863 crore, higher 4% y-o-y. This was
Iron Ore and Aluminium business, inclusion of FACOR in FY2021, r
Past Sales and Earnings Performance volume at Oil & Gas, Skorpion, and lower cost recovery in FY2021
Earnings per share before exceptional items for FY2021 were `32

Classification(Construction/
Manufacturing/Communications/Retail MINING.
Trade etc)

India continues to be Vedanta’s primary market, and the V-shaped reco

Demand for lead acid batteries, which drive more than 80% demand fo
Demand of the Product Apart from being a contributor to GDP, it underpins the supply of raw m

India continues to be Vedanta’s primary market, and the V-shaped recover

us.Demand for lead acid batteries, which drive more than 80% demand fo
raw materials to the nation’s burgeoning manufacturing sector.
1. Competition in the industry-
The strategies of the firms within the industry are diverse, which means
them running head-on into each other regarding strategy. The exit barr
investment required in capital and assets to operate. This makes the riv

2. Potential of new entrants into the industry-

The economies of scale is fairly difficult to achieve in the industry in wh
high R&D costs All of these factors make the threat of new entrants a w
advertising and customer services as well. The government policies wit
be fulfilled before a company can start selling. This makes it difficult for
new entrants a weak force. All of these factors make the threat of new

3. Power of suppliers-
The industry in which Vedanta Limited operates is an important custom
Porter's Five Forces Analysis compared to the buyers. This means that the industry’s profits are close
provide reasonable pricing. This makes the bargaining power of supplie
suppliers have less control over prices and this makes the bargaining po
 The MMDR Act sets out the legal framework for the mining sector:
-Mineral Concession Rules 1960 (MC Rules)
-Mineral Conservation and Development Rules 2017
Government Laws and Regulations -Mineral (Auction) Rules 2015
-Offshore Areas Mineral (Development and Regulation) Act 2002 (OAM

Vedanta focuses signifacntly on leveraging technology and adoptin

initiative, they have introduced several measures, such as smart m
Technology Dependency order to improve volumes and optimise asset utilisation.

Monopoly in the zinc-lead-silver, aluminium, iron ore, copper sector- la

Oil and Gas- oligopoly
Steel & power- perfect competition
Perfectly Competitive/Monopoly/Oligopoly

Company Analysis

MPS 327.65
Mkt Cap 122184
Market Share

Geographical/Business Segments ZINC SECTOR-

The Company’s Zinc business in India is owned and operated by Hindustan Z
interest and the Government of India 29.54%.
Oil & gas sector-
The Company’s Oil & Gas business, Cairn India, is owned and operated by V
gas exploration and production companies, and indeed is the country’s large
resource base, with interest in five blocks in India and one in South Africa.
Aluminium sector-
The Company’s Aluminium business is owned and operated by Vedanta Lim
which Vedanta has a 51% interest with the balance owned by the Governme
Commercial power sector-
The Company’s Power business is owned and operated by Vedanta Limited
subsidiary of Vedanta.
Iron ore sector-
The Company’s Iron Ore Business is wholly owned by Vedanta Limited and S
and processing of iron ore, pig iron and metallurgical coke, and power gene
Goa and Karnataka.
 Goa and Karnataka.

SWOT Analysis Strengths of Vedanta Resources

Diversified Business: Vedanta Resources has clients all around the world and
Customer Satisfaction: The company with its strong and dedicated customer
high level of customer satisfaction.
Strong Network: Vedanta has built a reliable distribution network over the y
Strong Assets: With a worldwide network of consumers, Vedanta has their m
only in India but also abroad.
Strong Financial Position: Automation of activities, successful marketing stra
new products and highly skilled workforce has given Vedanta Resources a st

Opportunities for Vedanta Resources

Business to Online: Over the past few years, the company has invested a lar
with this investment the doors to new sales channels can be opened.
Expansion: An opportunity of expanding the business more, worldwide thro
Community Programs: The company should start developing community pr
brand image in nearby regions but will also help them gain potential custom
The Market Development: This will help them in decreasing the competitor
Resources to increase its competitiveness compared to other organizations.
A Chance to Open New Market Segments with the Government Agreemen
government free trade agreement has provided Vedanta Resources to excel

Manufacturing Capacity N/A

Oil and gas and metals company Vedanta plans major expansion at Bharat
which will involve an investment of Rs 6,611 crore over the next 18-24 mo
Future Prospects
Vedanta Limited has planned a capital expenditure of $5 billion (around Rs

Expansion Plans
Raw Material Prices
velopment) Act, 1957 (MMDR Act 1957 in short) was enacted so
d development of minerals under the control of the Union. The
and 1999 in keeping with changes in the policy on mineral

endency of demand on other countries to

appreciated

GDP, whereas in countries with similar reserves, the contribution is 7-

rporation (IFC) report, Vedanta’s operations contribute 1 per cent to

during the recent quarter, according to mining

ly chain and labor are all growing problems,

ed professionals, who seek to develop their careers aligned to our culture and facilitated by an
ocratic environment. They have rolled out health programmes for their employees and business
used on telemedicine, promotion of mental health and health monitoring so that their people
e trying times.
e, higher 4% y-o-y. This was driven by higher commodity prices, higher volumes at Zinc India, Copper,
usion of FACOR in FY2021, rupee depreciation, partially offset by lower power sales at TSPL, lower
wer cost recovery in FY2021.
items for FY2021 were `32.80 per share as compared to `10.79 per share in FY2020.

ket, and the V-shaped recovery of the economic performance of India in FY2021 is positive for them.
more than 80% demand for lead.
derpins the supply of raw materials to the nation’s burgeoning manufacturing sector.

t, and the V-shaped recovery of the economic performance of India in FY2021 is positive for
more than 80% demand for leadApart from being a contributor to GDP, it underpins the supply of
facturing sector.
4. Power of customers-
y are diverse, which means they are unique to each other in terms of strategy. This results in The number of suppliers in the indus
ding strategy. The exit barriers within the industry are particularly high due to the high This explains that the buyers have a
operate. This makes the rivalry among existing firms a strong force within the industry. over prices. Even though the income
threat to the buyers to integrate bac
y- making the buyers more price sensiti
hieve in the industry in which Vedanta Limited operates. Capital expenditure is high due to within the industry.
threat of new entrants a weak force within this industry. There is a strong emphasis on
e government policies within the industry require strict licensing and legal requirements to 5. Threat of substitute products-
g. This makes it difficult for new entrants to join the industry, therefore, making the threat of There are very few substitutes availa
rs make the threat of new entrants weak within this industry. substitutes that are available are als
no ceiling on the maximum profit th
products a weaker force within the i
tes is an important customer for its suppliers. The number of suppliers in this is a lot
industry’s profits are closely tied to that of the suppliers. These suppliers, therefore, have to
argaining power of suppliers a weaker force within the industry. This means that the
is makes the bargaining power of suppliers less.
rk for the mining sector:
)
ules 2017

Regulation) Act 2002 (OAMDR Act).

ng technology and adopting Industry 4.0 practices. Under the ‘Pratham’

measures, such as smart manufacturing and advance process control in
asset utilisation.

, iron ore, copper sector- largest market share.

Steel sector-
nd operated by Hindustan Zinc Limited (HZL), with the Company holding a 64.9% Vedanta Limited completed the acquisition of 9
4 June 2018.
Copper sector-
s owned and operated by Vedanta Limited. It is one of India’s largest independent oil & The Company’s copper business is owned and o
ndeed is the country’s largest private producer of crude oil. It has a world-class Ltd (CMT) Australia, and Fujairah Gold FZE in th
a and one in South Africa. Other interests-
The Company’s other activities include a 100%
d operated by Vedanta Limited and Bharat Aluminium Company Limited (BALCO), in (VGCB). This port business includes coal handli
ce owned by the Government of India. Visakhapatnam Port on India’s east coast. The C
which manufactures LCD glass substrate.
erated by Vedanta Limited and Talwandi Sabo Power Limited (TSPL), a wholly owned

d by Vedanta Limited and Sesa Resources Limited and consists of exploration, mining
gical coke, and power generation. The mining operations are located in the states of
 Weaknesses of Vedanta Resources
nts all around the world and it’s one of the leading businesses in its industry. Investment in Innovation: Even though investment in
ng and dedicated customer relationship management has been able to have a terms of innovation, it’s lagging behind its competito
Organization Structure: It is only compatible with its
ribution network over the years which helps it to reach the potential market. expansion of new products and limits the growth of t
sumers, Vedanta has their mines and have built their manufacturing units not Allegations: At times name being involved in alleged
Government Intervention: Government intervention
s, successful marketing strategies for their products, success at execution of Technology: The company needs more investments in
ven Vedanta Resources a strong financial position in its industry. is planning in different areas to expand into. At prese

Threats to Vedanta Resources

company has invested a large sum of money into taking the business online, Sales Depend Upon Seasons: Sales also depend on th
nels can be opened. which can affect the profitability of the company even
ness more, worldwide through the London headquarters. Brand Image of Competitors: Good brand images of t
t developing community programs that will not only help them to get a good neglected by any company at any cost.
them gain potential customers. Changes in Customer Buying Behaviour: A company n
decreasing the competitors’ advantage and work in the favour of Vedanta customer, if you ignore them the customers won’t tak
red to other organizations. Environment Regulations: As a mining company, Veda
he Government Agreement: Adoption of new technology standards and done so the company can go through big losses.
Vedanta Resources to excel in new market segments.

major expansion at Bharat Aluminium Company's (Balco) smelter capacity

ore over the next 18-24 months.

ure of $5 billion (around Rs 37,500 crore) over a period of three years.

 r of customers-
mber of suppliers in the industry is a lot more than the number of firms producing the products.
plains that the buyers have a few firms to choose from, and therefore, do not have much control
ces. Even though the income of the buyers within the industry is low, there is no significant
o the buyers to integrate backward. This means that there is pressure to purchase at low prices,
the buyers more price sensitive. This makes the bargaining power of buyers a weaker force
he industry.

at of substitute products-
re very few substitutes available for the products that are produced in this industry. The very few
tes that are available are also produced by low profit-earning industries. This means that there is
ng on the maximum profit that firms can earn. All of these factors make the threat of substitute
s a weaker force within the industry.
completed the acquisition of 90% of the share capital of Electro steel Steels Limited (ESL) on

opper business is owned and operated by Vedanta Limited, Copper mines of Tasmania Pty
ia, and Fujairah Gold FZE in the UAE.

ther activities include a 100% interest in the Vizag General Cargo Berth Private Limited
business includes coal handling facilities and general cargo at the outer harbour of
ort on India’s east coast. The Company also owns a 100% interest in Avanstrate Inc (ASI),
res LCD glass substrate.
a Resources
on: Even though investment in R&D ( Research and Development ) is above average but in
lagging behind its competitors, which is not only affecting sales but also brand image.
It is only compatible with its current and previous business model which limits the
cts and limits the growth of the company in different sectors.
me being involved in alleged illegal mining, practices have a spoiled brand name.
on: Government intervention in the mining business can cause operation inefficiency.
ny needs more investments in new technologies, given the scale of expansion the company
reas to expand into. At present, the company is behind in the investment in technology.

ources
sons: Sales also depend on the season as the demand for profitable products is seasonal
fitability of the company even after having enough resources.
titors: Good brand images of the competitors are one of the threats which shouldn’t be
ny at any cost.
uying Behaviour: A company needs to always focus on the needs and wants of the
hem the customers won’t take much time to shift to new products or services.
ns: As a mining company, Vedanta has to make sure to follow all environmental rules if not
n go through big losses.
 BAL
PARTICULARS 2017 2018
A ASSETS
1 Non-current assets
(a) Property, Plant and Equipment 36,042.00 37,132.00
(b) Capital work-in-progress 12,215.00 10,386.00
('c) Financial Assets:
(i) Intangible Assets 155.00 44.00
(ii) Investments 66,417.00 62,473.00
(e) Deffered Tax Assets (Net) 1,958.00 -
(f) Long Term Loan & Advances - -
Other Non Current Assets 10,019.00 13,903.00
Total Non Current Assets(A1) 126,806.00 123,938.00
2 Current assets
(a) Inventories 5,540.00 8,149.00
(b) Financial Assets
(i) Trade receivables 1,529.00 1,968.00
(ii) Cash and cash equivalents 1,414.00 1,594.00
(iii) Loans & Advances 286.00 14.00
Investments 19,668.00 5,537.00
Other Current Assets 10,941.00 5,969.00
Total Current Assets(A2) 39,393.22 23,246.78
Total Assets(A1+A2) 166,199.22 147,184.78
B EQUITY AND LIABILITIES
1 EQUITY
(a) Equity Share capital 372.00 372.00
(b) Other Equity - -
(c') Reserves & Surplus 79,396.00 81,951.00
Total Equity(B1) 79,768.00 82,323.00
LIABILITIES
2 Non-Current liabilities
(a) Financial Liabilities
(i) Borrowings 22,248.00 11,800.00
(b) Provisions 808.00 852.00
(c) Deferred tax liabilities (Net) - 26.00
(d) Other non-current liabilities 5,749.00 2,523.00
Total Non Current Liability(B2) 28,805.00 15,201.05
3 Current liabilities
(a) Financial Liabilities
(i) Borrowings 14,309.00 18,320.00
(ii) Trade payables 14,975.00 14,066.00
(b) Other current liabilities 28,245.00 17,130.00
(c) Provisions 82.00 129.00
(d) Current Tax Liabilities (Net) - -
Total Current Liabilities(B3) 57,760.08 49,757.78
Total Liabilities (B2+B3) 86,565.08 64,958.83
Total Equity and Liabilities (B1+B2+B3) 166,333.08 147,281.83
 BALANCE SHEET
2019 2020 2021 2022

40,972.00 37,087.00 38,222.00 38,268.83

14,148.00 11,027.00 9,096.00 11,374.40

34.00 31.00 27.00 29.00

64,204.00 60,787.00 60,887.00 59,129.80
3.00 3,464.00 333.00 1,153.33
197.00 183.00 180.00 173.70
8,652.00 8,035.00 8,344.00 8,035.67
128,210.00 120,614.00 117,089.00 118,164.73

7,657.00 5,689.00 5,555.00 6,659.99

1,966.00 832.00 1,136.00 1,355.28

3,891.00 2,193.00 4,336.00 1,773.89
118.00 1,596.00 523.00 1,124.20
4,378.00 2,118.00 2,016.00 20,888.22
4,647.00 6,408.00 7,076.00 7,144.98
22,675.57 18,844.47 20,653.07 38,946.56
150,885.57 139,458.47 137,742.07 157,111.28

372.00 372.00 372.00 372.00

2.00 2.00 2.00 2.00
77,508.00 69,523.00 76,418.00 71,444.00
77,882.00 69,897.00 76,792.00 71,818.00

20,519.00 21,627.00 20,911.00 21,566.90

988.00 1,185.00 1,169.00 1,285.89
- - - -
2,749.00 2,836.00 2,660.00 2,659.33
24,256.16 25,648.20 24,739.99 25,512.12

17,180.00 17,948.00 7,169.00 14,964.71

11,262.00 3,510.00 3,803.00 9,409.83
20,147.00 22,352.00 25,129.00 23,070.97
140.00 95.00 98.00 91.32
- - - -
48,835.46 43,940.41 36,236.11 47,536.83
73,091.62 69,588.61 60,976.09 73,048.95
150,973.62 139,485.61 137,768.09 144,866.95
2023 2024 2025 2026

39,799.58 41,391.56 43,047.23 44,769.12

11,206.28 11,370.34 10,814.80 10,772.36

28.00 28.50 28.25 28.38

57,855.20 56,580.60 55,306.00 54,031.40
992.40 1,190.88 1,428.45 1,021.34
167.62 161.75 156.09 150.63
8,138.89 7,967.74 7,979.51 7,869.33
118,187.97 118,691.37 118,760.33 118,642.56

6,926.39 7,203.45 7,491.59 7,791.25

1,409.49 1,465.87 1,524.50 1,585.48

1,735.66 1,697.42 1,659.18 1,620.94
1,462.66 1,630.03 1,569.49 2,041.52
21,723.75 22,592.70 23,496.40 24,436.26
7,430.78 7,728.01 8,037.13 8,358.61
40,688.72 42,317.46 43,778.29 45,834.06
158,876.69 161,008.84 162,538.62 164,476.62

372.00 372.00 372.00 372.00

2.00 2.00 2.00 2.00
68,737.60 68,040.18 67,638.74 64,167.01
69,111.60 68,414.18 68,012.74 64,541.01

22,282.20 22,997.50 23,712.80 24,428.10

1,414.47 1,555.91 1,711.49 1,882.62
- - - -
2,541.78 2,502.15 2,410.57 2,353.62
26,238.45 27,055.56 27,834.85 28,664.34

Err:522 Err:522 Err:522 Err:522

9,786.22 10,177.67 10,584.77 11,008.17
23,993.81 24,953.56 25,951.71 26,989.78
85.09 79.29 73.88 68.84
- - - -
Err:522 Err:522 Err:522 Err:522
Err:522 Err:522 Err:522 Err:522
Err:522 Err:522 Err:522 Err:522
FORECASTING
FACTORS

98.28%

3.50%

17.1%

12.70
3.00%

53.65%
18.35%

10.00%

31.48%
88.21
59.25%
-6.82%
 FORECASTING ASSUMPTIONS

Multiple of Sales
Average value of CWIP of Last 4 years

to be maintained at last 2 years' average

Forecast based on the previous 5 years
based on the previous 5 years' trend
decreasing by 3.5% annually
trend of past 3 years

average % of sales for the past 4 years

average of last 3 years of receivable days

to be maintained at 3% of investments
trend of past 5 years
to be maintained at the highest value of historical % of sales
historical % of sales

remains constant
remains contant
trend of past 5 years

expected to grow in a linear manner

to be maintained at the average growth for the past 5 years

trend of past 3 years

average % of total current liabilities

average of last 5 years of payable days
to be taken as historical % of sales
average growth for the last 3 years
 STATEMENT OF
PARTICULARS 2017 2018
I REVENUE FROM OPERATIONS 36,663.00 45,524.00
II OTHER INCOME 9,705.00 3,866.00
III Total Income (I+II) 46,368.00 49,390.00
IV EXPENSES
Cost of materials consumed 18,788.00 25,209.00
Purchases of Stock-in-Trade 580.00 426.00
Changes in inventories of finished goods, Stock-
in -Trade and work-in-progress (417.00) (11.00)
Direct and Operating Expenses 5,582.00 7,647.00
Employee benefits expense 784.00 802.00
Interest Expense 3,741.00 3,326.00
Dividend 2,097.92 7,370.00
Depreciation and amortization expense 2,986.00 2,842.00
Other expenses 4,695.00 4,758.00
Total expenses (IV) 38,836.92 52,369.00
V Profit/(loss) before exceptional items and
tax (III- IV) 7,531.08 (2,979.00)
VI EXCEPTIONAL ITEMS -(PROFIT)/LOSS 1,324.00 5,407.00
VII Profit/(loss) before tax (V-VI) 6,207.08 (8,386.00)
VIII TAX EXPENSE (271.00) 1,968.00
(1) Current tax 2.00 -
(2) Deferred tax (273.00) 1,968.00
(3) Earlier year Taxes - -
IX Profit (Loss) for the period from
continuing operations (VII-VIII) 6,478.08 (10,354.00)
X Profit/(loss) from Discontinued operations
(after tax) - -
XI Profit/(loss) for the period (IX+X) 6,478.08 (10,354.00)
STATEMENT OF PROFIT & LOSS
2019 2020 2021 2022 2023
38,644.00 35,858.00 37,440.00 38,937.60 40,495.10
6,152.00 2,870.00 10,948.00 7,155.20 7,304.20
44,796.00 38,728.00 48,388.00 46,092.80 47,799.30

15,508.00 12,493.00 13,990.00 17,051.35 17,733.40

505.00 227.00 204.00 103.10 8.00

307.00 1,430.00 70.00 73.50 77.18

9,179.00 7,930.00 6,763.00 1,946.88 2,024.76
862.00 765.00 903.00 922.28 941.97
3,727.00 3,863.00 3,293.00 2,520.68 2,611.03
7,881.00 1,696.00 1,696.00 3,311.30 Err:522
3,243.00 3,264.00 2,519.00 2,716.72 2,929.95
6,812.00 7,186.00 6,850.00 6,169.36 6,416.14
48,024.00 38,854.00 36,288.00 34,815.17 Err:522

(3,228.00) (126.00) 12,100.00 11,277.63 Err:522

324.00 (12,568.00) (232.00) (6,403.22) (6,406.39)
(3,552.00) (12,694.00) 11,868.00 17,680.86 Err:522
(128.00) (3,731.00) 3,161.00 1,124.38 Err:522
5.00 4.00 104.00 37.56 48.38
(245.00) (592.00) 3,138.00 1,610.04 2,368.75
112.00 (3,143.00) (81.00) (615.15) (736.75)

(3,424.00) (8,963.00) 8,707.00 16,556.48 Err:522

- - - - -
(3,424.00) (8,963.00) 8,707.00 16,556.48 Err:522
 FORECASTING
2024 2025 2026 FACTORS
42,114.91 43,799.50 45,551.48 4.0%
7,453.20 7,602.20 7,751.20
49,568.11 51,401.70 53,302.68

18,442.74 19,180.45 19,947.67 43.8%

(87.10) (182.20) (277.30)

81.03 85.09 89.34 5.0%

2,105.75 2,189.98 2,277.57 5.0%
962.09 982.63 1,003.61 2.1%
2,703.03 2,796.76 2,892.29 6.9%
Err:522 Err:522 Err:522 20.0%
3,159.92 3,407.95 3,675.44 7.8%
6,672.78 6,939.69 7,217.28 15.8%
Err:522 Err:522 Err:522

Err:522 Err:522 Err:522

(6,409.56) (6,412.72) (6,415.89)
Err:522 Err:522 Err:522
Err:522 Err:522 Err:522 6.4%
63.13 49.54 53.52 -0.3%
2,530.21 3,648.38 5,356.89 101.5%
(882.38) (1,078.95) (670.94) -1.2%

Err:522 Err:522 Err:522

- - -
Err:522 Err:522 Err:522
 FORECASTING ASSUMPTIONS

Increase in manufacturing units & M&A

Trend Analysis

historical percentage oh past 5 years

Linear forecasting to forecast
Will increase due to increase in stock in trade and also, new
manufacturing units for various metals
% of Sales
Average of the previous years to sales
% of General Borrowings and Non Current Liability
% of Net Income
Average from PPE
% of Sales

Trend

% of PBT
% of Current Tax to Total Tax Expense
% of Deferred Tax to Total Tax Expense
% of Earlier years Taxes to Total Tax Expense
 STATEMENT OF CASHFLOW
2022
CASH FROM OPERATING ACTIVITY
Net Profit before Tax & Extra Items 17,680.86
Add/Less Non Cash or Non Operating Items
(+) Depreciation 2,716.72
(+) Interest Expense 2,520.68
Cash From Operations Before WC Changes 22,918.25
Investments 20,888.22
Inventory 6,659.99
Trade Receivables 1,355.28
Loans & Advances 1,124.20
Short Term Borrowings 14,964.71
Trade payables 9,409.83
Other current liabilities 23,070.97
Cash from Operations after WC Changes 100,391.5
(-) TAX paid (37.56)
Cash From Operating (A) 100,353.9

CASH FROM INVESTING

Interest Income 0.00
Purchase/Sale of Fixed Assets 46.83
Purchase/Sale of Investments (1,757.20)
Cash from Investing (B) -1710.3714887

CASH FROM FINANCING

Interest Expense 2,520.68
Dividend 3,311.30
Borrowings (6,602.19)
Other Non Current Liabilities 2,659.33
Cash From Financing ('C) 1889.1233059
Net Cash Flow 100,533
Opening Cash & CE 1,773.89
Closing Cash & CE 102,307
NT OF CASHFLOW
2023 2024 2025 2026
OPERATING ACTIVITY
18,077.66 18,477.02 18,878.49 19,281.59

2,929.95 3,159.92 3,407.95 3,675.44

2,611.03 2,703.03 2,796.76 2,892.29
23,618.64 24,339.98 25,083.20 25,849.32
21,723.75 22,592.70 23,496.40 24,436.26
6,926.39 7,203.45 7,491.59 7,791.25
1,409.49 1,465.87 1,524.50 1,585.48
1,462.66 1,630.03 1,569.49 2,041.52
15,558.76 16,176.88 16,820.02 17,489.15
9,786.22 10,177.67 10,584.77 11,008.17
23,993.81 24,953.56 25,951.71 26,989.78
104,479.7 108,540.1 112,521.7 117,190.9
(48.38) (63.13) (49.54) (53.52)
104,431.3 108,477.0 112,472.1 117,137.4

ROM INVESTING
0.00 0.00 0.00 0.00
1,530.75 1,591.98 1,655.66 1,721.89
(1,274.60) (1,274.60) (1,274.60) (1,274.60)
256.15314045 317.38326607 381.06259671 447.28910058

OM FINANCING
2,611.03 2,703.03 2,796.76 2,892.29
3,385.61 3,460.40 3,535.59 3,611.08
(6,723.44) (6,820.62) (6,892.78) (6,938.95)
2,541.78 2,502.15 2,410.57 2,353.62
1814.9763854 1,844.97 1850.1403578 1918.0404668
106,502 110,639 114,703 119,503
1,735.66 1,697.42 1,659.18 1,620.94
108,238 112,337 116,363 121,124
DATE CLOSING PRICE BSE SENSEX RI
Jan-17 253.15 27,655.96
Feb-17 259.1 28,743.32 0.0235
Mar-17 274.7 29,620.50 0.0602
Apr-17 243.6 29,918.40 -0.1132
May-17 239 31,145.80 -0.0189
Jun-17 249.05 30,921.61 0.0421
Jul-17 279.65 32,514.94 0.1229
Aug-17 308.15 31,730.49 0.1019
Sep-17 313.95 31,283.72 0.0188
Oct-17 331.9 33,213.13 0.0572
Nov-17 295.8 33,149.35 -0.1088
Dec-17 329.75 34,056.83 0.1148
Jan-18 339.5 35,965.02 0.0296
Feb-18 329.45 34,184.04 -0.0296
Mar-18 278.3 32,968.68 -0.1553
Apr-18 298.5 35,160.36 0.0726
May-18 249.3 35,322.38 -0.1648
Jun-18 235.75 35,423.48 -0.0544
Jul-18 222.25 37,606.58 -0.0573
Aug-18 227.2 38,645.07 0.0223
Sep-18 231.75 36,227.14 0.0200
Oct-18 211.25 34,442.05 -0.0885
Nov-18 195.8 36,194.30 -0.0731
Dec-18 202.35 36,068.33 0.0335
Jan-19 197.5 36,256.69 -0.0240
Feb-19 169.4 35,867.44 -0.1423
Mar-19 183.75 38,672.91 0.0847
Apr-19 166.85 39,031.55 -0.0920
May-19 160.65 39,714.20 -0.0372
Jun-19 174.3 39,394.64 0.0850
Jul-19 154.15 37,481.12 -0.1156
Aug-19 139.3 37,332.79 -0.0963
Sep-19 154.05 38,667.33 0.1059
Oct-19 148.3 40,129.05 -0.0373
Nov-19 144.45 40,793.81 -0.0260
Dec-19 152.5 41,253.74 0.0557
Jan-20 137.95 40,723.49 -0.0954
Feb-20 114 38,297.29 -0.1736
Mar-20 64.75 29,468.49 -0.4320
Apr-20 89.6 33,717.62 0.3838
May-20 92.15 32,424.10 0.0285
Jun-20 106.35 34,915.80 0.1541
Jul-20 113.8 37,606.89 0.0701
Aug-20 128.55 38,628.29 0.1296
Sep-20 136.9 38,067.93 0.0650
Oct-20 95.85 39,614.07 -0.2999
Nov-20 121 44,149.72 0.2624
Dec-20 161.45 47,751.33 0.3343
Jan-21 161.2 46,285.77 -0.0015
Feb-21 206.9 49,099.99 0.2835
Mar-21 228.65 49,509.15 0.1051
 RM

0.0393 BETA 1.75

0.0305 Rm 79%
0.0101 Rf 6.69%
0.0410
-0.0072 Ke 133%
0.0515
-0.0241 Interest 3,293.00
-0.0141 Debt 24,742.00
0.0617 Tax 0.30
-0.0019
0.0274 Kd 9.3%
0.0560
-0.0495
-0.0356 COMPUTATION OF WACC
0.0665 Amount Weights Costs
0.0046 Equity Share Capital 372.00 0.01 133%
0.0029 Other Equity 2.00 0.00 133%
0.0616 Debt 24,742.00 0.99 9.3%
0.0276 25,116.00 WACC
-0.0626
-0.0493
0.0509
-0.0035
0.0052
-0.0107
0.0782
0.0093
0.0175
-0.0080
-0.0486
-0.0040
0.0357
 0.0378
0.0166
0.0113
-0.0129
-0.0596
-0.2305
0.1442
-0.0384
0.0768
0.0771
0.0272
-0.0145
0.0406
0.1145
0.0816
-0.0307
0.0608
0.0083
C

0.019732
0.000106
0.091778
11.16%
 COMPUTATION OF ENTERPRISE VALUE
2022 2023 2024
Net Income 16,556.48 16,928.05 17,302.01
(+) Depreciation 2,716.72 2,929.95 3,159.92
(+) Interest*(1-t) 1,764.48 1,827.72 1,892.12
(-) Investment in Working ca 6,992.76 144.89 334.77
(-) Investment in FA 46.83 1,530.75 1,591.98
FCFF 28,077.26 23,361.37 24,280.82
Terminal Value
Total 28,077.26 23,361.37 24,280.82
Enterprise Value ₹312,018.94
SE VALUE
2025 2026
17,677.96 18,055.42
3,407.95 3,675.44 WACC 11.16%
1,957.74 2,024.60 Growth Rate 4%
582.15 69.78
1,655.66 1,721.89
25,281.45 25,547.13
370,992.90
25,281.45 396,540.02
 DIVIDEND DISCOUNT MODEL
2021 2022 2023
Sales 37,440.00 38,937.60 40,495.10
EBIT 12,100.00 11,277.63 11,671.27
(-) Interest 3,293.00 2,520.68 2,611.03
EBT 8,807.00 8,756.95 9,060.24
(-) tax 2,642.10 2,627.09 2,718.07
PAT 6,164.90 6,129.87 6,342.17
Dividend 1,696.00 3,311.30 3,385.61
Terminal Value
Total 1,696.00 3,311.30 3,385.61
Value of Equity ₹1,810.56
No of Shares 372
Value Per Share 4.87

Growth Y3 to Y4 2.14%
Reduction in Growth Rate 1.5%
Terminal Growth Rate 0.64%
Ke 133%
NT MODEL
2024 2025 2026
42,114.91 43,799.50 45,551.48
12,067.46 12,465.77 12,865.70
2,703.03 2,796.76 2,892.29
9,364.43 9,669.00 9,973.41
2,809.33 2,900.70 2,992.02
6,555.10 6,768.30 6,981.39
3,460.40 3,535.59 3,611.08
2,740.89
3,460.40 3,535.59 6,351.97
 COMPUTATION OF FCFE
2021 2022 2023 2024
Sales 37,440.00 38,937.60 40,495.10 42,114.91
Net Profit 16,556.48 16,928.05 17,302.01
Capex 5,567.93 5,790.64 6,022.27
Investment in WC 6,992.76 144.89 334.77
Debt Financing 21,566.90 22,282.20 22,997.50
FCFE 25,562.69 33,274.71 33,942.47
Terminal Value
Total 25,562.69 33,274.71 33,942.47
Value of Equity ₹21,844.64
No of Shares 372
Value Per Share ₹58.72
 2025 2026
43,799.50 45,551.48
17,677.96 18,055.42 Ke 133%
6,263.16 6,513.69 Growth Rate 4.0%
582.15 69.78
23,712.80 24,428.10
34,545.45 35,900.06
27,781.92
34,545.45 63,681.98
 Vedanta Ltd Hindustan Zinc Gravita India JSW Steel Ltd
Current Market Price 364 317.25 372.9 632.1
EPS 28.23 21.73 4.66 88.48
BVPS 208.27 76.47 40.26 190.9
Cash Flow Per Share 0.702 0.740 0.215 46.007777594
Sales Per Share 100.65 52.177 177.6633 292.59887473

Hindustan Zinc Gravita India JSW Steel Ltd Mean

P/E 14.600 80.021 7.144 33.922
P/BVPS 4.149 9.262 3.311 5.574
P/CF 428.744 0.001 0.073 142.939
P/S 6.080 2.099 2.160 3.446
Value Per Share
 Vedanta Ltd
12.894 437.389
1.748 9.742
518.805 74157.406
3.617 12.465
ue Per Share 18654.250
 BASED ON FCFE
IMPACT OF Rf AND GROWTH ON VALUE PER SHARE
₹58.72 6.69% 7.50% 8.12% 8.76% 9.30%
4%
5%
6%
7%
8%

BASED ON DDM
IMPACT OF Rf AND GROWTH ON VALUE PER SHARE (DDM)
₹4.87 6.69% 7.50% 8.12% 8.76% 9.30%
4%
5%
6%
7%
8%
Rf 6.69%
Growth 4%