Home / Business and Economy / Vedanta Stock Soars Past Rs 700 on Fitch Upgrade
Vedanta Stock Soars Past Rs 700 on Fitch Upgrade
6 Apr
Summary
- Vedanta Ltd. stock price surged over Rs 700 on April 6th.
- Fitch Ratings upgraded Vedanta Resources' outlook to Stable.
- Vedanta's demerger timeline extended to June 30, 2026.
Vedanta Ltd. experienced a significant stock price increase, trading above Rs 700 on April 6th. This surge followed Fitch Ratings' upgrade of its parent, Vedanta Resources Limited (VRL), to a Long-Term Foreign-Currency Issuer Default Rating of 'BB-' from 'B+', with a Stable Outlook.
Fitch's upgraded outlook for VRL is attributed to expectations of robust EBITDA generation and sustained deleveraging over the next few fiscal years, driven by higher commodity prices and healthy volumes. The rating agency anticipates that VRL's credit metrics will remain consistent with the upgraded rating.
Furthermore, Vedanta Resources' planned demerger into five distinct entities is expected to have limited initial credit impact on VRL, according to Fitch. The company has extended the timeline for this demerger process, with the finalization now expected by June 30, 2026, from the previous March 31, 2026 deadline.
Vedanta recently reported strong Q4 production figures, including a 48% year-over-year increase in Alumina production and record-high annual mined metal production for Zinc India. Analysts maintain a positive outlook, with a consensus BUY recommendation and an average target price suggesting significant upside potential.
