Vedanta Aluminium Metal Limited

Basic Materials — Aluminum · NSE

₹372.10+₹12.55 (+3.49%)

DalalBaazaar Score

24 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, with both sales and profits growing well. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Vedanta Aluminium Metal Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Vedanta Aluminium Metal Limited engages in the production of metallurgical grade alumina and aluminium products. The company provides aluminium ingots, foundry alloys, billets, slabs, wire rods, flip coils, and rolled and other products under the VEDANTAL brand.

IndustryAluminum

SectorBasic Materials

Employees6,212

Who are its competitors?

The closest listed comparisons in its industry are HINDALCO INDUSTRIES LTD, VEDANTA LIMITED, TATA STEEL LIMITED, JSW STEEL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is the outlook?

13 analysts covering the stock expect revenue to grow about 3.9% and earnings to grow about 0.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+3.9%

Est. earnings growth+0.8%

Analysts13

DalalBaazaar Score

24/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

25/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

30/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

37.9x

Sector Median

12.2x

median of 4 sector peers

⚠️Against its sector it trades 211% above the peer median of 12.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

12.2x median of 4 peers · +211%

vs. generic bands

N/A

Multiples unreliable — equity base is negative

EV/EBITDA

—

PEG

—

Red Flags

6 items require attention · 3 high · 3 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Thin interest coverageFinancial
Operating profit covers interest only -5.7x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -5.6x to -5.7x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹0 Cr in the latest year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.19 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
A premium to the sector to defend
It trades 211% above the peer median. That premium needs a reason that persists, or it closes.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
2Interest cover stays above 3x✗ -5.7x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

6 / 10 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹1.45 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

37.9x

Fair

Fairly valued against the generic band

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹9.83

Profitable

Profitable on a per-share basis

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

Not available

No data

Source didn't return this field

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

46.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

216.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

4.30%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

6.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

45.3%

Good

Healthy core-business profitability

Net Margin

56.3%

Good

Strong bottom-line conversion

Current Ratio

0.19

Tight

Tight short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

400.1 / 425.9

Bearish alignment (short < long)

RSI (14)

27.4

Oversold zone

Financial Trend (3-Year)

Metric	FY24	FY25	FY26	2Y CAGR
EBITDA	-₹0 Cr	-₹0 Cr	-₹0 Cr	—
PAT (Net Profit)	-₹0 Cr	-₹0 Cr	-₹0 Cr	—
EPS	₹-0	₹-0	₹-0	—
Total Debt	—	₹0 Cr	₹0 Cr	—
Free Cash Flow	—	-₹0 Cr	-₹0 Cr	—

Balance Sheet & Cash Flow — FY2026

Total Assets

₹0 Cr

Total Liabilities

₹0 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

20.7%

Insider Holding

58.4%

Corporate Actions

Dividend Rate

₹16

Ex-Dividend Date

05 Aug 2026

Analyst Consensus

Recommendations

12 Buy · 0 Hold · 1 Sell

Target Price (Mean)

₹535.23

+43.8% vs CMP

Target Range

₹370 – ₹600

Peer Comparison

Company	P/E	ROE
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%

Recent News

3 mixed3 general

Vedanta Aluminium Metal Ltd. (VAML) Share Price hits fresh 52-week low

Univest, 13 Oct

Nalco, Vedanta Aluminium, To Hindalco: Metal Stocks Crash Continues! Brokerage Says 'Sell Aluminium Names'

Goodreturns, 15 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Volume Shocker: MFs add 1 crore+ shares to 5 stocks in September; shares tumble up to 43%

The Economic Times, 15 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Vedanta Aluminium, Nalco, Hindalco shares: Aluminium price falls but Emkay sees up to 53% upside

Business Today, 16 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Vedanta vs Vedanta Iron and Steel vs Vedanta Aluminium Metal vs Hindustan Zinc: Which stock to buy and why | Target, SL

Livemint, 06 Oct

Vedanta Aluminium delivers strong debut: Profit zooms 205% to ₹6,597 Cr, EBITDA jumps 134% to ₹10,499 Cr YoY

Vedanta Aluminium Metal Limited, 30 Jul

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

MiddlingGrowth

WeakBusiness Quality · Financial Health · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

Vedanta Aluminium Metal Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 2 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑