In an unexpected turn of events, Vedanta’s stock experienced a significant decline during early trading hours on April 4, plummeting nearly 6%. The shares reached an intraday low of Rs 414.35, coinciding with a sluggish start for the broader market, where the Sensex dropped by 1%.
Market Pressure on Vedanta
Despite facing challenges, other metal stocks also saw a downturn. However, Vedanta’s performance lagged behind the Nifty Metal index, which fell approximately 4% in the same timeframe.
Remarkable Production Figures
Interestingly, this price drop followed a day after Vedanta announced record-breaking production figures across various sectors for the quarter ending March 2025. The company achieved unprecedented highs in aluminium and zinc output, alongside notable growth in oil, gas, steel, iron ore, and power sales. Yet, the market seemed unfazed by these achievements, opting to react negatively instead.
Update on Vedanta’s Demerger Plans
The anticipation surrounding Vedanta’s impending demerger into five independent entities remains high, although the timeline has been adjusted. Originally slated for completion by March 31, 2025, the new deadline is now September 30, 2025. This delay is due to pending approvals from the NCLT and other regulatory bodies. The proposed structure post-demerger includes:
- Vedanta Aluminium Metal
- Vedanta Oil and Gas
- Vedanta Power
- Vedanta Steel and Ferrous Materials
- Vedanta (continuing with base metals)
Ambitious Expansion Plans
In a bold move, Vedanta announced a substantial $20 billion investment plan in April 2025, aimed at expanding its operations across key sectors such as aluminium, copper, zinc, steel, oil & gas, and power. To support this ambitious growth strategy, the company has earmarked Rs 30,000 crore from a combination of institutional placements, dividends, and existing cash reserves.
Performance Insights: Vedanta’s Stock Journey
Vedanta’s stock has seen considerable volatility recently. In today’s trading, it continued its downward trend, marking a 10% decline over the past five days. However, it has shown a slight recovery with a 2% gain in the last month.
Over the past six months, Vedanta’s shares have dropped by about 18%, but on a positive note, they have appreciated by 34% year-on-year. So far in 2025, the stock has decreased nearly 7% year-to-date (YTD). Currently, the share price fluctuates between a 52-week high of Rs 526.95 and a 52-week low of Rs 301.70, with a market capitalisation of around Rs 1.55 lakh crore.
With these developments, investors and analysts alike are keenly watching how Vedanta navigates its challenges and capitalizes on its growth prospects in the coming months.
