Billionaire Anil Agarwal-backed metal giant, Vedanta Limited is coming up with yet another dividend reward for its shareholders. With a yield of 6.3%, Vedanta is the highest dividend yield stock in large-cap and metal baskets compared to its counterparts. This time the company is considering a third interim dividend after already paying up to 1500% dividends in FY25. Vedanta is on the path of split-up in the ratio of 1:6. CLSA is the latest to like this metal stock and has given an 'Outperform' rating for a target price of Rs 520.
Vedanta Share Price:
After market hours of August 30, 2024, the stock price ended at Rs 468.25 apiece, up by 1.08% on BSE with a market cap of Rs 1,83,103.92 crore.
While the stock is near its 52-week high of Rs 506.85 apiece, it has more than doubled from its 52-week low of Rs 207.85 apiece. YTD, Vedanta shares are up by 21.4% on BSE.
Vedanta Dividend:
As per the regulatory filing, the meeting of the Board of Directors of the Company (the "Board") is proposed to be scheduled on Monday, September 02, 2024, to consider and approve the Third Interim Dividend on equity shares, if any, for the Financial Year 2024-25.
For the third interim dividend, Vedanta Gas fixed Tuesday, September 10, 2024, as the record date to determine eligible shareholders.
Earlier, for FY25, the company paid a second interim dividend of 400% worth Rs 4 per share for which it turned ex-dividend on August 8, 2024. The first interim dividend for the fiscal was 1100% worth Rs 11 per share and Vedanta turned ex-dividend on May 24, 2024, for the same.
In FY24, Vedanta delivered up to 2,950% dividend valuing Rs 29.5 per share.
At the current price, the company has a dividend yield of 6.3%.
CLSA On Vedanta:
The foreign brokerage recently stated that in the past month, Vedanta has underperformed its rivals. Also, the stock has not followed the uptrend in metal prices.
In a 30-days period, Vedanta stock is up by 3.82% on BSE.
Further, CLSA believes the latest corporate actions including a stake sale in Hindustan Zinc via offer for sale, coupled with dividends by both Vedanta and Hindustan Zinc - are likely to augur well for Vedanta's deleveraging.
Accordingly, CLSA has a positive outlook on Vedanta, while it maintained 'Outperform' on the stock, for a target price of Rs 520.
Vedanta 1:6 Demerger:
One of the much-awaited developments in Vedanta is its demerger into six businesses, aka a 1:6 ratio. Vedanta has received approval to demerger metals, power, aluminium, and oil and gas businesses to unlock potential value. After the exercise, six independent verticals - Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals and Vedanta Limited - will be created.
As part of the demerger plan, for every share of Vedanta, shareholders will receive one share of each of the five newly listed companies. After the demerger, the businesses of Hindustan Zinc and the electronics business will remain with Vedanta Limited.
The company is expecting to complete its demerger by December 2024 end.
Vedanta Limited is one of the world's foremost natural resources conglomerates, with primary interests in aluminium, zinc-lead-silver, oil and gas, iron ore, steel, copper, power, ferroalloys, nickel, semiconductor and glass. With world-class strategic assets based across India, South Africa, Namibia and Liberia, we are rightly positioned to create long-term value with superior cash flows.
Click it and Unblock the Notifications
Sign in with Google