Vedanta demerger- Retail investor perspective
A THREAD
73500cr debt ( Jun '23)
21200cr debt maturing in FY24 /FY25
8200cr maturing in Jan '24
cash depleting
share price falling fast
100% of promoter holding pledged
read on
#vedanta south africa
themoatinvestor.com
A THREAD
73500cr debt ( Jun '23)
21200cr debt maturing in FY24 /FY25
8200cr maturing in Jan '24
cash depleting
share price falling fast
100% of promoter holding pledged
read on
#vedanta south africa
themoatinvestor.com
2
High debt & high Dividends
last 10 yr Dividends paid > 10 yr PAT
total 10yr Dividends Rs 85000cr
total 10yr PAT Rs 65400cr
#MUNBRE
High debt & high Dividends
last 10 yr Dividends paid > 10 yr PAT
total 10yr Dividends Rs 85000cr
total 10yr PAT Rs 65400cr
#MUNBRE
3
Last 6 yrs (FY18 -FY23)
> 7000cr capex every year
paying > 5000cr/ yr interest repayment
Despite these not reducing debt which remains above 55000cr for most years
In FY20, paid 1450cr dividends despite net loss.
#SouthAfrica
Last 6 yrs (FY18 -FY23)
> 7000cr capex every year
paying > 5000cr/ yr interest repayment
Despite these not reducing debt which remains above 55000cr for most years
In FY20, paid 1450cr dividends despite net loss.
#SouthAfrica
5
High dividends paid out by Vedanta Ltd is for debt-servicing of parent company Vedanta Resources
Nearing debt maturity
Debt maturity of 10900cr in FY24
10300cr in FY25,8200cr matures in Jan '24, leading to recent S&P global downgrade from BBB to C-
south africa #vedanta
High dividends paid out by Vedanta Ltd is for debt-servicing of parent company Vedanta Resources
Nearing debt maturity
Debt maturity of 10900cr in FY24
10300cr in FY25,8200cr matures in Jan '24, leading to recent S&P global downgrade from BBB to C-
south africa #vedanta
6
Promoter has sold off 4.4% stake in Aug '23
10 year returns to shareholders
Without considering dividends, stock has given 2% CAGR returns in last 10 years, share price was in 180 range 10 years back ( 2013), current 220
#vedanta Manipur
Promoter has sold off 4.4% stake in Aug '23
10 year returns to shareholders
Without considering dividends, stock has given 2% CAGR returns in last 10 years, share price was in 180 range 10 years back ( 2013), current 220
#vedanta Manipur
7
Rs 230 dividends in last 10 years, considering that 10 year CAGR returns come as 9.6% ( Nifty 13%)
Considering the sharp spikes in stock prices, acquiring price of normal retail investor in these commodity stocks may vary a lot
#vedanta south africa
Rs 230 dividends in last 10 years, considering that 10 year CAGR returns come as 9.6% ( Nifty 13%)
Considering the sharp spikes in stock prices, acquiring price of normal retail investor in these commodity stocks may vary a lot
#vedanta south africa
8
, as we retail investors usually acquire a stock when it nears its peaks and it is in news everywhere. So someone who would have bought Vedanta in in Jun 2014 at 300 levels, for him CAGR would be 4.6%, less than FD returns.
#vedanta manipur
, as we retail investors usually acquire a stock when it nears its peaks and it is in news everywhere. So someone who would have bought Vedanta in in Jun 2014 at 300 levels, for him CAGR would be 4.6%, less than FD returns.
#vedanta manipur
9
Earlier, in 2020, co tried to delist Vedanta at offer price of 87, significant discount to book value of 147 at that time.
Imagined situation of investors, most hv bought higher
Pls share to max ppl
More in-depth in our blog
Manipur #vedanta
themoatinvestor.com
Earlier, in 2020, co tried to delist Vedanta at offer price of 87, significant discount to book value of 147 at that time.
Imagined situation of investors, most hv bought higher
Pls share to max ppl
More in-depth in our blog
Manipur #vedanta
themoatinvestor.com
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