UK 04:55 Thursday, 29 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Vedanta (VED), with a market cap of £1,021 million, has fallen by some 68% since its 2014 peak, to 371p. In the twelve years or so since it floated, Vedanta shares have has been as high as near 3,000p but are now right back down to below the IPO price from 2003.
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Comments
J P Spaghetti
“Why the market has concern over the group’s ability to service its debt and risk of refinancing is beyond me.”
Despite the FCF, the very small float and the dominance of AA’s holding, at this point in time I think it would take sizeable kahoonas to invest more than beer money in VED. Interesting play, though.
wildrides
Very interesting piece ……..Ta
Gary Newman
Matt,
Glad I’m not the only one who sees value – have been wondering if I was missing something (tipped it yesterday on here and hold shares myself from 384p) as seemed to be ignored by many!
One of my favourites at the moment for long term recovery and potentially a lot of upside if commodity prices recover, so see it as a long term hold and will look to add more on any dips – although bounce on oil future last night should help!
Was also interesting to see how the market took the Cairn India update the previous week and rose to close to 500p yet has fallen back since – even though that was the most negative part of the Q3 production update.
Will also be interested to see how they finance the HZL purchase – if indeed they do buy the government’s share, with the sale of that now having been approved.
Also interesting that the credit5 ratings agencies seem more positive on this one than on a lot of the others in these sectors at the moment (although still have a negative outlook on the Ba1 and Ba3 ratings for the company and unsecured debt, Moodys). Plus the downturn on prices of commodities comes at a time when Vedanta have lower short term debt commitments than in recent years.
Matt Earl
Gary,
Yes, I reckon worth a wager down here. I also wouldn’t be too surprised to see AA try to buy in the remaining 30%. I’m sure he has a few contacts to help him raise finance for debt restructuring and the extra 30% if he needs it. In medium to long term, VED is clearly capable of generating its current market cap in FCF. So for him to strike now would make sense to me. Either way, stable oil price or a bounce and they should respond accordingly.
Matt