Vedanta Share

Can It be Multibagger?
There are the following four things which are required to be seen to decide whether Vedanta Share can be a Multibagger share or not:-
  1. Product : The Vedanta Industries is in the business of exploration, production and sale of aluminum, iron ore, copper, commercial power and oil and gas. A wide array of VEDANTA products is of prime utility in industrial sectors like power, packaging, chemical, logistics, and defence. Different product offerings include aluminum ingots, billets and bars used for making buses. So as a customer , we can not tell whether the products of Vedanta are good or bad?
  2. Future Demand and Stability: The demand of aluminum, iron ore, copper, commercial power oil and gas will remain in the future. Means , the company can stay long. But since all the above products of the company are mainly influenced by Political Parties in the government. So the business of the company is also influenced by the government interference and its policies.
  3. Expansion : The expansion can be done but not strongly? Why, because the product is aluminum, iron , power and gas. Since the consumer is not directly associated with the company products and only industries are associated. There is a term in expansion ” Compulsion ” . The industries have a lot of options and they can not be forced to use the products of Vedanta. When the consumer force is not directly associated with any company, the chances of the company to become a multibagger is very little. However, the company may perform slowly like “elephant”.
  4. Cash for Expansion : Cash is king. Every company require it for its expansion. If we check the Balancesheet of Vedanta ( VEDL), in 2016 we see a turn around in the company balancesheet. lets see the chart of the VEDL:-
There were some chances in the Vedanta after April 2016 to rise. Right now we dont see any major factor which shows that the Vedanta Company can be a Multibagger. Lets see the chart of Vedanta Company:-
As we told above, there were some turn around in April 2016, we can see above in april 2016 the share price was Rs.118 and the share went to Rs.350 in 2018 means in just one and half year. We dont count it as a Multibagger. A multibagger is like Minda Industries which is still trading at 347 as on 25.3.2019. In 2016 the price of Minda Industries was rs.76. You can see the difference. The Minda Industries is still trading 5x ( 5 times ) from the price in 2016. Whereas Vedanta Industries ( VEDL) was Rs.100 and today i.e. 25.3.2019 , it is trading at Rs.168 means just 70% of the price. Whereas the Minda Industries is 500% of its price.
If you also want to findout multibagger stocks and earn big , you must pay attention to the fundamental of the company and its product.
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