Vedanta Group biggest wealth creator in FY25 so far; adds over Rs 2.2 lakh crore in market capitalisation

Vedanta Group comprising, Vedanta Ltd and Hindustan Zinc Ltd, have generated the maximum wealth for investors on the Dalal Street in the current fiscal so far, with the combined market valuation of both firms surging by Rs 2.2 lakh crore.

The market capitalisation of the Vedanta Group surged by over Rs 2.2 lakh crore between March 28 and June 20, 2024, according to stock exchange data.

This is higher than the market cap growth witnessed by leading Indian businesses like Reliance Industries, Mahindra Group, and the Tata Group during the same period.

Share prices of Vedanta and Hindustan Zinc have doubled from their 52-week lows, backed by multiple positives, including the proposed demerger, the management's consistent focus on deleveraging, and significant improvement in earnings, as per stock exchange data.

In comparison, Adani and Mahindra groups saw their market cap rise by Rs 1.4 lakh crore each.

While Tata Group's market cap rose by over Rs 60,600 crore, heavyweight RIL's market valuation declined by more than Rs 20,656.14 crore during this period.

Vedanta delivered its second-highest-ever revenue of Rs 1,41,793 crore and EBITDA of Rs 36,455 crore in FY24, with an EBITDA margin of 30 per cent despite a moderate commodity cycle.
Vedanta Group has chalked out a strategic roadmap to achieve an EBITDA of USD 10 billion in the near term, backed by the timely execution of more than 50 high-impact growth projects, including those in zinc, aluminium, oil & gas and power businesses.

The rising conviction of investors in Vedanta Group was evident in the increasing shareholding of institutional buyers, as foreign institutional investors' holding in Vedanta rose to 8.77 per cent at the end of March quarter from 7.74 per cent a quarter ago.

Adding to the positive is the strengthening of commodity prices, which, along with the accrual of benefits of most cost optimisation initiatives coming from FY25 onwards, is expected to support Vedanta's profitability, said analysts.

Vedanta and Hindustan Zinc stocks hit their all-time highs of Rs 506.85 and 807 on May 22.

Shares of Vedanta on Thursday jumped 4.86 per cent to Rs 470.25, while Hindustan Zinc climbed 2.29 per cent to Rs 647.65 on the BSE.