Vedanta Resources Shares – Profitable?

Vedanta Resources shares

It can sometimes to exactly grasp the sheer scope of some companies. If you are interested in Vedanta Resources and have ever contemplated purchasing Vedanta Resources shares then the chances are that you have made the attempt to grasp the sheer scale of the enterprise, and this short article will probably do no more than serve as a useful reminder of your earlier researchers. If you have never heard of Vedanta Resources and have never so much as thought about Vedanta Resources shares then you may learn something that will inspire you into further researches of your own. The first thing to grasp is that Vedanta is a company that is interested in exploring, discovering, extracting and processing many types of minerals and also fuel sources. In itself, it is India’s largest mining company and also its largest producer of non-ferrous metals. It produces silver, copper, iron, zinc, aluminium and lead. It discovers and develops oil and gas reserves and is involved in the commercial production of power in India, Australia, Ireland, Liberia, Namibia, South Africa and Zambia. To say that Vedanta Resources is globally diversified seems to be something of an understatement! Similarly, the scope of its operations also shows an unusual degree of diversification. This complex of inter-related industries is for the most part owned by the Indian billionaire Anil Agarwal through the medium of the holding company Volcan Investments, which possesses a nearly 62% stake in the business as a whole. When the company was floated on the London Stock Exchange back in 2003, its Initial Public Offering raised US$ 876 million. The company raised an additional US$2 billion with an ADR issue in 2007 and in 2011 it acquired Cairn India, owner of the lucrative Rajasthan Oil fields for US$8.67 billion.

Of course potential investors in Vedanta Resources shares will also be aware that the company has encountered its fair share of criticism over the years, though this is hardly surprising when you consider the company’s global reach and also the passionate nature of arguments which tend to arise over matters of mineral extraction in this world which is only too aware of the dangers of pollution and environmental damage. Vedanta has been criticized at various times for its safety record, for its treatment of indigenous peoples living in the areas where it exploits and develops minerals, over its general treatment of parts of its workforce, and over allegations that certain operations, especially those involved in copper smelting, were causing environmental damage. Despite all these concerns Vedanta Resources has continued on its course and continued to expand. Perhaps the most worrying development to those who might be potential purchasers of Vedanta Resources shares was the involvement of a Vedanta subsidiary in violations of the Indian excise law which resulted in a sizeable fine. Despite all this, in 2016 Vedanta Resources had an overall revenue of US$ 11.556 billion, an operating income of US$ 881.2 million and showed a profit of US$ 1.4819 billion.

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