Case study

VEDL

Vedanta

Worth a closer look1y model -42.4%

Each stock's 10,000-path forecast, rendered as light.

0Score

Vedanta (VEDL) Stock Analysis & Case Study

Is VEDL a good buy? The data-driven verdict.

Vedanta (VEDL) trades at ₹306,on the numbers it worth a closer look, a Downstox Snapshot Score of 65/100.

On the numbers, Vedanta (VEDL) worth a closer look, a Downstox Snapshot Score of 65/100, weighing inexpensive at 13.8× earnings, ROE of 19.0%, a 25% model probability of trading higher in a year. Below: the full bull case, bear case, sector-relative valuation, and a probability-weighted price target for 20272031.

Last updated . Data snapshot for research, not investment advice.

VEDL fundamentals at a glance, PE, PB, ROE, ROCE, market cap, dividend yield

Market cap
₹1.20L Cr
Current price
₹306
P/E ratio
13.8×
P/B ratio
2.41×
Book value
₹127
Dividend yield
14.20%
ROCE
16.5%
ROE
19.0%
Piotroski F-Score
4/9

Is VEDL overvalued? VEDL P/E vs its Metals

VEDL's P/E of 13.8× sits below the Metals peer median of 18.8×, so on earnings it screens cheaper than peers, while its 14.20% dividend yield is above the peer median of 0.92%.

VEDL P/E
13.8×
Peer median P/E
18.8×
VEDL div yield
14.20%
Peer median yield
0.92%

VEDL share price target 2027, 2028, 2029, 2030, 2031, a probability view

Unlike a single guessed number, this is a probability-weighted range from a 10,000-path Monte-Carlo simulation on 2.0y of VEDL history (-22%/yr drift, 82%/yr volatility).

YearLow (P10)Median target (P50)High (P90)Upside vs today
VEDL 2027₹61₹173₹497-42%
VEDL 2028₹22₹99₹441-67%
VEDL 2029₹9₹58₹350-81%
VEDL 2030₹4₹33₹276-89%
VEDL 2031₹2₹19₹200-94%

Median (P50) is the central estimate; the P10–P90 band is the 80% confidence range. Probabilities, not promises.

What is the probability VEDL goes up, or doubles?

25%
Higher in 1 year
Modelled chance the price is above today in 12 months
7%
Higher in 5 years
Modelled chance the price is above today in 5 years
3%
Doubles in 5 years
Modelled chance of reaching ₹602 within 5 years

The bull case for VEDL

  • Trades at just 13.8× earnings, below the ~22× long-run Nifty average, so the valuation leaves room rather than pricing in perfection.
  • High return on equity (19.0%), the business compounds shareholder capital efficiently, the hallmark of a quality franchise.
  • Pays a 14.2% dividend yield, so you're partly paid to wait.
  • Upside scenario: the model's optimistic (P90) 3-year path reaches ₹350.

The bear case & risks

  • The probability model is cautious 12 months out, only a 25% chance of finishing above today's price.
  • High historical volatility (82%/yr) means a wide, bumpy range of outcomes, size positions accordingly.
  • Downside scenario: the model's pessimistic (P10) 3-year path falls to ₹9.

VEDL volatility & expected range, how bumpy is the ride?

Over the last 2.0 years VEDL compounded at -22%/year with annualized volatility of 82%. That volatility implies a 1-year 80% range of ₹61₹497, the honest backbone behind any single price target.

VEDL price forecast, the full 60-month probability fan

Spot Price · Today
₹0
Based on 2.0 years of daily NSE data ·0.0% annualised volatility
5-yr median forecast
₹0
P(price ↑ in 5y)
0%
1-Year Forecast
2027
₹0
Median (P50)
42.4%
80% range₹61–₹497
P(price ↑)25%
P(price 2×)6%
3-Year Forecast
2029
₹0
Median (P50)
80.7%
80% range₹9–₹350
P(price ↑)12%
P(price 2×)5%
5-Year Forecast
2031
₹0
Median (P50)
93.7%
80% range₹2–₹200
P(price ↑)7%
P(price 2×)3%

VEDL price probability fan

Each band shows where 10,000 simulated paths land. The wider the fan, the more uncertainty.

Probability Fan
VEDL simulated paths · 60 months · 10,000 trials
P10–P90 (80%)P25–P75 (50%)Median (P50)

Probability of key outcomes

What are the odds VEDL hits common targets within the simulated horizon?

0%
P(↑ 1Y)
Above today's price in 1 year
0%
P(↑ 5Y)
Above today's price in 5 years
0%
P(2×)
Doubles within 5 years
0%
P(↓)
Falls below today in 5 years

Full multi-horizon detail on the VEDL price target & forecast page.

VEDL Piotroski F-Score: 4/9, how financially strong is it?

4/9

The Piotroski F-Score grades financial strength on nine profitability, leverage and efficiency checks. VEDL scores 4/9,mixed financial health.

VEDL MTF margin & leverage, Upstox, Zerodha, Groww, Dhan

Margin Trading Facility lets you buy VEDL with part of the capital. Lower margin % = higher leverage. Rates compared across brokers (no competitor publishes this):

BrokerMargin requiredApprox. leverage
Upstox35.0%2.9×
ZerodhaCHEAPEST27.6%3.6×
Groww27.6%3.6×
Dhan42.0%2.4×

Compare every broker on the VEDL MTF page.

VEDL vs peers,Metals comparison

StockP/EDiv yieldMarket cap
VEDL (this stock)13.8×14.20%₹1.20L Cr
TATASTEEL22.0×2.01%₹2.48L Cr
JINDALSTEL28.6×0.18%₹1.15L Cr
HINDALCO13.0×0.49%₹2.28L Cr
JSWSTEEL34.4×0.55%₹3.13L Cr
SAIL18.8×0.92%₹72,222 Cr
NATIONALUM12.0×2.78%₹69,480 Cr

About Vedanta: sector, index & market-cap context

Vedanta (VEDL) is a large-cap NSE-listed company in the Metals sector, and a constituent of the Nifty 50 index group, with a market capitalisation of ₹1.20L Cr. See more Nifty 50 stocks.

How the VEDL Snapshot Score & forecast are built

The Downstox Snapshot Score is a transparent, rules-based read of Vedanta's public fundamentals plus a statistical forecast, not an analyst opinion. It rewards low-to-fair valuation, high ROE/ROCE, a strong Piotroski F-Score, a dividend, low volatility and a favourable probability of upside; it penalises rich valuations, weak capital efficiency, a low F-Score and high volatility. The price target is a 10,000-path Monte-Carlo simulation on real historical volatility, a distribution, not a single guess. The bull and bear cases are generated from the same data, so you always see both sides.

This is information, not investment advice. Do your own due diligence and consult a SEBI-registered adviser before investing.

VEDL analysis, FAQs

Is Vedanta (VEDL) a good buy?

On the numbers, Vedanta (VEDL) worth a closer look, a Downstox Snapshot Score of 65/100, weighing inexpensive at 13.8× earnings, ROE of 19.0%, a 25% model probability of trading higher in a year. This is a data snapshot for research, not investment advice.

Is VEDL overvalued or undervalued?

VEDL trades at 13.8× earnings versus a peer median of 18.8×, so it screens cheaper than its Metals peers.

What is the VEDL share price target for 2031?

VEDL's probability-weighted 2031 median target is ₹19, with an 80% range of ₹2₹200 (10,000-path Monte-Carlo).

What is the probability VEDL doubles in 5 years?

The modelled probability of VEDL reaching ₹602 (2×) within 5 years is 3%.

What is the bull case for VEDL?

Trades at just 13.8× earnings, below the ~22× long-run Nifty average, so the valuation leaves room rather than pricing in perfection. High return on equity (19.0%), the business compounds shareholder capital efficiently, the hallmark of a quality franchise. Pays a 14.2% dividend yield, so you're partly paid to wait.

What are the risks in VEDL?

The probability model is cautious 12 months out, only a 25% chance of finishing above today's price. High historical volatility (82%/yr) means a wide, bumpy range of outcomes, size positions accordingly.

More on VEDL