From Metals to Semiconductors & Display Glass: This multibagger company is entering new business segments!
The semiconductor market is projected to reach a staggering USD 80 billion by the year 2025, while the display glass market is expected to expand to USD 15 billion by the same year.
Vedanta Limited, India’s natural resources and technology conglomerate today announced the addition of semiconductors and display glass manufacturing ventures to its diversified portfolio. This represents a large growth opportunity for India where the semiconductor market stood at USD 24 billion in 2022 and is estimated to reach USD 80 billion by 2026. The display panel market is estimated to be worth USD 7 billion and is expected to grow to USD 15 billion by 2025.
Currently, India imports 100 per cent of these requirements. Vedanta Limited’s twin ventures will provide added momentum to the Government’s goal of Atmanirbharta in electronics. The global semiconductor industry is at an exciting juncture. India is in a sweet spot to capitalize as the world looks to diversify critical supply chains in semiconductors and display fab.
In approving these acquisitions, the Board of Vedanta Limited believes Vedanta and its shareholders, as well as India’s economy, can benefit from the tremendous opportunity these shifting global dynamics provide. The acquisition will be affected by way of a share transfer at the face value of Twin Star Technologies Limited’s (“TSTL”) Semiconductor and Display SPVs. TSTL is a wholly owned subsidiary of Volcan Investments Limited, the ultimate holding company of Vedanta Limited.
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On Monday, shares of Vedanta Ltd zoomed 0.59 per cent to Rs 282.25 per share with an intraday high of Rs 283.85 and an intraday low of Rs 279.55. The shares of the company saw a spurt in volume by more than 2.75 times on BSE. The company has a market cap of over 1 lakh crore and reported positive numbers in its Quarterly Results (Q4FY23) and annual results (FY23).
The company has consistently maintained a robust dividend payout ratio of 159 per cent, demonstrating its commitment to rewarding shareholders. Furthermore, the stock offers an attractive dividend yield of 35.9 per cent, providing investors with an amazing return on their investment.
The stock boasts a PE ratio of 3.81x and an impressive ROE of 40.34 per cent. It has surged by 28 per cent in just one year and an astounding 150 per cent over the course of three years. Investors should keep an eye on this multibagger large-cap stock.