iifl-logo-icon 1

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

Vedanta targets $10 billion in EBITDA

14 Jun 2024 , 06:48 PM

Vedanta has said that the timely completion of more than 50 projects in a variety of business verticals will propel the group’s strategic plan, which aims to reach a $10 billion EBITDA soon. According to news reports, this roadmap was discussed during site visits this week that were attended by over 45 investors, fund managers, and analysts from top brokerages and fund houses. With these new initiatives, the group hopes to produce $5 billion in free cash flows.

Almost $8 billion has been invested by the Vedanta Group in its expansion initiatives. In Lanjigarh, the group will also put into service the biggest alumina refinery in the world. According to a presentation provided by the fund managers, the $10 billion near-term EBITDA is made up of $4.2 billion from aluminium, $2.7 billion from zinc and silver company Zinc India, and $0.9 billion from oil and gas.

Growth projects in progress include increasing the capacity of the BALCO smelter from 0.6 to 1 MTPA, the Lanjigarh alumina refinery from 3.5 to 5 MTPA, the Gamsberg phase 2 capacity from 250 to 500 KTPA, and the total power generation capacity from 2.9 GW to 5 GW.

According to the presentation, India’s Gross Domestic Product (GDP) is predicted to increase at a healthy rate and reach $7 trillion by 2030, placing the Group in a strong position to benefit from the country’s economic expansion.

By the end of this year, Vedanta hopes to float five entities on stock exchanges and propose a vertical split of the firms. According to the plan, current shareholders would also receive one share of each of the five recently listed businesses for every share of Vedanta Limited. Zinc and other current businesses will continue to be under Vedanta, but the demerger will form autonomous pure-play firms in the aluminium, power, base metals, oil and gas, and steel and ferrous industries. The State Bank of India approved Vedanta’s proposed demerger at the beginning of this month.

According to an analyst, “one can expect a sizeable growth in the business going forward, considering the metal’s relevance,” and Vedanta is well-positioned to profit from the current boom in commodities.

In the last three months, Vedanta shares have increased by 75%, greatly beating the Sensex by a margin of 68%.

Similar opinions were expressed by another investor who visited the Zinc underground mines at Sindesar Khurd and Vedanta’s onshore oil field at Barmer, which is a part of Cairn Oil & Gas. “These Vedanta projects stand to benefit as demand will remain strong on the back of the high economic growth that we are witnessing,” he said, citing the multi-year highs in commodities.

For feedback and suggestions, write to us at editorial@iifl.com

For opening a demat account click on: https://www.indiainfoline.com/

For doing stock trading & investments, go to: https://ttweb.indiainfoline.com/trade/Login.aspx

For loans, go to: https://www.iifl.com/

Related Tags

  • EBITDA
  • Vedanta
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More
Knowledge Centerplus
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Securities Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Knowledge Centerplus

Follow us on

facebooktwitterrssyoutubeinstagramlinkedin

2024, IIFL Securities Ltd. All Rights Reserved

ATTENTION INVESTORS
  • Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
  • KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
  • No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.

RISK DISCLOSURE ON DERIVATIVES
  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to Rs. 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

plus
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.