In This Article:
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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Vedanta Limited (NSE:VEDL) due to its excellent fundamentals in more than one area. VEDL is a well-regarded dividend-paying company that has been a rockstar for income investors, currently trading at an attractive share price. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Vedanta here.
Undervalued average dividend payer
VEDL is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of VEDL's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, VEDL's share price is trading below the group's average. This further reaffirms that VEDL is potentially undervalued.
For those seeking income streams from their portfolio, VEDL is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 12%, making it one of the best dividend companies in the market.
Next Steps:
For Vedanta, I've put together three key aspects you should further research:
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Future Outlook: What are well-informed industry analysts predicting for VEDL’s future growth? Take a look at our free research report of analyst consensus for VEDL’s outlook.
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Historical Performance: What has VEDL's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of VEDL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.