Vedanta vs SRF Which Performs Better?

Vedanta Limited and Shriram Transport Finance Company (SRF) are two prominent companies in the Indian stock market. Vedanta is a diversified natural resources company, while SRF is a leading non-banking financial corporation. Both companies have attracted investors due to their strong performance and growth potential. Vedanta has a wide range of operations in sectors like mining, oil, and gas, while SRF specializes in providing financial solutions. Investors often compare these two stocks to make informed investment decisions based on their respective market dynamics and growth prospects.

Vedanta or SRF?

When comparing Vedanta and SRF, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Vedanta and SRF.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Vedanta has a dividend yield of 7.18%, while SRF has a dividend yield of 0.31%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Vedanta reports a 5-year dividend growth of 10.35% year and a payout ratio of 0.00%. On the other hand, SRF reports a 5-year dividend growth of -9.71% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Vedanta P/E ratio at 17.09 and SRF's P/E ratio at 60.28. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Vedanta P/B ratio is 5.17 while SRF's P/B ratio is 5.67.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Vedanta has seen a 5-year revenue growth of 0.61%, while SRF's is 0.66%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Vedanta's ROE at 29.79% and SRF's ROE at 9.86%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹472.80 for Vedanta and ₹2286.40 for SRF. Over the past year, Vedanta's prices ranged from ₹241.50 to ₹523.65, with a yearly change of 116.83%. SRF's prices fluctuated between ₹2089.10 and ₹2693.95, with a yearly change of 28.95%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.