Why Vedanta Keeps Support from JP Morgan, BofA

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When foreign short-sellers launch manipulative and aggressive attacks, it’s often the Indian companies that find themselves in the spotlight. That’s exactly what happened with a renowned conglomerate, Vedanta Ltd. (NSE:VEDL), which was recently roped in false allegations. American short-seller, Viceroy Research, has made headlines by publishing a controversial report against Vedanta’s parent company, Vedanta Resources Ltd. (VRL). The 87-page report raised several concerns about VRL, raising a question about its ethical business practices.

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Though such allegations typically rattle investors, in the case of Vedanta, leading global brokerage firms and Indian retail have shown remarkable confidence in Vedanta, continuing to back the company in the toughest times.

Who is Viceroy Research?

Viceroy Research LLC is an investigative financial research firm with registration in Delaware, USA. Viceroy is not a SEBI-registered research entity, nor does it operate under the oversight of Indian regulatory bodies. Viceroy has a history of manipulation, falsely targeting several global companies through detailed negative reports, often while holding active short positions in their stocks or bonds.

The recent 87-page Viceroy Research report accused VRL of draining VEDL, forcing it to take on more debt and deplete its cash reserves, impairing creditors’ ability to recover their principal. The report further alleged that VEDL promoted capital-intensive projects that it could not afford to raise fresh capital for, which were paid out to VRL.

The Reality of Vedanta, Far Away from the Allegations

One fact to note is that Vedanta operates in the Metals and Mining sector, often a capital-intensive industry and one that works on debt globally. The report completely discounts this fact, and rather chose to focus only on facts that serve their vested interest. Vedanta proactively dismissed the Viceroy Research report by calling it a malicious combination of selective misinformation and baseless claims done purposefully to tarnish Vedanta’s reputation. With plans to prioritise sustainable growth and financial resilience, Vedanta continues its legacy by driving sustainability and maximising resources effectively, something that is reflected in their FY25 Results as well. VEDL delivered the highest-ever Revenue at 1,50,725 crore, second highest-ever EBITDA at 43,541 and 172% increase in Net Profit at 20,535 crore.

Not only this, but VEDL was the top wealth creator among NIFTY 100 in FY25, delivering total shareholder returns of 87%.

Why Leading Brokerages Remain Bullish on Vedanta?

Rather than following the panic trail, top global brokerage firms like JP Morgan, Bank of America (BofA), etc. have shown immense confidence in Vedanta and here’s why:

1. Proven Track Record

Vedanta has been an integral part of India’s economic growth story for decades. Its operations span across metals, mining, oil & gas, and power industries that play an important role in India’s infrastructure and development. The company’s venture in strategic minerals, critical minerals and energy transition metals is also forward looking. Such a diversified portfolio and earnings projection gives it resilience, even when one vertical sees temporary dips.

2. Strong Financials and Payouts

Even in the toughest times, Vedanta continued its operations with utmost honesty and transparency. Even the analysts and investors have evaluated Vedanta based on its encouraging numbers, audit records, higher share values, etc. Vedanta’s strong dividend history, consistent tax compliance, and proactive investor communication are enough to sideline all the baseless allegations made in the Viceroy report.

In FY 2024-25 alone, Vedanta contributed over ₹55,349 crores in total taxes through both direct and indirect contributions. Moreover, it distributed ₹43.5 per share as dividends, resulting in a total outgo of over ₹17,000 crores to shareholders. Over the past four years, it has distributed more than ₹200 per share in dividends, not the behaviour of a company in financial distress.

3. Questionable Intent of the Report

Brokerages today understand the key difference between independent equity research and short-seller reports done with vested interests. The same is the case with Viceroy, where experts noticed that several data points were presented without context or were misrepresented. This weakened the credibility of the entire report.

Dhanendra Kumar, former Executive Director at the World Bank and founding chairman of the Competition Commission of India, talked about how such attacks are planned to create panic. He further pointed out how these foreign entities release such reports to create maximum impact, often around earnings releases or major policy announcements, to influence the market and benefit the most with short-selling strategies.

4. India’s Regulatory Oversight and Business Resilience

Top brokerages also recognise that Indian businesses operate under strong regulatory frameworks. SEBI, the Ministry of Corporate Affairs, and other bodies keep a close eye on public companies like Vedanta. In case of some blunders, the regulatory body must have already taken actions. Also, India’s business environment today is far more robust, making it hard for loosely regulated foreign entities to damage reputations without facing scrutiny themselves.

The Bigger Picture: Vedanta Isn’t Just a Conglomerate, It’s a Contributor to the Nation

Beyond business, Vedanta’s Chairman, Anil Agarwal, has shown deep commitment to giving back to society and communities. He has pledged to donate 75% of his wealth to social causes, with a keen focus on women and child development, education, and youth empowerment. Anil Agarwal also regularly features on the Hurun India Philanthropy List for his philanthropic contributions. In the 2024 list, he secured the 8th position, having donated ₹181 crores. He was also recognised in the 2020 list, with his contributions increasing by 90% compared to the previous year, placing him among the top five philanthropists in India, according to the Hurun Report.

In terms of exchequer contribution, Vedanta has been among the top players. Over the past decade, Vedanta has paid a whopping 4.5 lakh crore in exchequer contribution.

Final Thoughts

In the end, leading brokerages like JP Morgan and Bank of America continue to support Vedanta because the facts speak louder than speculation. Numbers, not narratives, shape long-term trust. And while foreign short sellers may come and go, strong businesses built on transparency, compliance, and contribution, like Vedanta, will continue to thrive.