If you are also thinking of investing in Vedanta or have done so, you have a question in your mind whether it is right to invest in Vedanta, then this blog is only for you. In this you will read is vedanta a good buy for long term
No matter how much you learn from the stock market, no matter how much you observe about the market, unless you act on it, the stock market does not move.
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Is it good to invest in Vedanta?
Vedanta is a better stock which is related to Metal sector.
The stock has made a high of 340 and low of 208 in last 52 weeks and is currently trading at 262 giving a good buying option.
The company’s PE is 4.24 and PB is 1.7 which can be considered quite good.
Although the company has a debt of Rs 52000 crore, but the debt equity ratio is only 0.75%, which is considered quite good.
The ROE of this company is 37% and ROCE is 25% which is considered quite good.
What is the price target of Vedanta in 2025?
If we talk about Vedanta’s recent performance, Vedanta has given good returns to its investors of 5 percent in the last week and 9 percent in the last one month.
While Vedanta has given negative returns of 15% in the last 1 year, Medanta has given positive returns of 25% in the last 5 years.
Vedanta is trading at Rs 262 today, there is every possibility that by 2025 there will be a huge boom in this sector and the price of this share can touch the figure of Rs 400.
What is the future prediction of Vedanta stock?
According to stock market experts, there may be good growth in the metal sector in the coming time, which will definitely benefit Vedanta and this sector will give better returns to its investors in the coming years.
Some sources believe that by 2030 the share price of Vedanta may even touch the figure of Rs 450.
Is Vedanta debt free?
Although Vedanta company has a debt of Rs 50,000 crore, but if we look at the debt equity ratio, it is only 0.7 percent, which is considered quite good in the stock market.
The market cap of the company is Rs 96000 crore, compared to which their debt of Rs 50000 crore does not seem very high.
At the same time, Vedanta stock also gives an annual dividend yield of about 38 percent to its investors, which is considered quite good.
Should you buy or sell Vedanta?
Looking at the recent performance of Vedanta, holding it for a long time can be considered a better strategy as this stock has given very good returns to its investors in recent times, while this company has a better promoter holding of 63 percent.
The debt equity ratio of the same company is 0.7 percent, ROE is 35% and ROCE is 25% which makes the company even better.
Therefore you should invest in this company for long term.
Is Vedanta a good buy for dividend?
Vedanta has no competition in terms of dividend.
Vedanta gives a dividend yield of 38% to its investors, which is considered quite good.
However, it should be noted that the dividend yield is not on the share price but on the face value of that company.
This is based on the above i.e. if the face value of the company is ₹ 1 then the dividend yield is 100% i.e. ₹ 1 will be given on one share.
Similarly, if the dividend yield is 38 percent, then a dividend yield of 38 paise will be given on one share.
So if you are looking for a stock only for dividend then Vedanta can be a better option for you.
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Why Vedanta gives high dividend?
Vedanta has seen sales growth of 23 percent in the last 3 years and 8% in the last 1 year.
This stock has seen an increase of 82% in the last three years and 58% in the last 1 year, which means that this company is giving good profits to its investors.
And they can give better dividend which they also followed and gave better dividend yield of 38% to their clients
Vedanta is also very positive about its future, hence it never shies away from giving dividend yield to its customers.