Why is Kotak Institutional Equities bullish on Vedanta Ltd. stock?

Kotak is bullish due to Vedanta's strong reliance on high-performing Aluminium, Zinc, and Silver, and anticipates value creation from its demerger.

What is Vedanta's expected EBITDA contribution from key metals?

Vedanta's FY2027 EBITDA is estimated to be derived primarily from Aluminium (50%), Zinc (20%), and Silver (15%).

When will Vedanta's proposed demerger exercise begin?

The demerger exercise is expected to begin in the fourth quarter of the current financial year.

Home / Business and Economy / Vedanta Stock Soars on Metal Rally

Vedanta Stock Soars on Metal Rally

16 Jan

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Summary

Kotak raises Vedanta's price target to ₹780, citing strong metal prices.
Vedanta's FY27 EBITDA heavily relies on Aluminium, Zinc, and Silver.
Demerger expected to unlock value and boost stock multiples.

Vedanta Ltd. is strategically positioned to capitalize on the current rally in base and precious metals. Brokerage firm Kotak Institutional Equities has reiterated its 'buy' recommendation, significantly raising the stock's price target to ₹780 from ₹650. This optimism is driven by the fact that nearly 85% of Vedanta's estimated EBITDA for financial year 2027 is projected to come from its Aluminium, Zinc, and Silver segments.

The company's financial outlook is bolstered by these key commodities, which are experiencing record or multi-year high prices globally. Furthermore, anticipated capacity expansions across Aluminium, Zinc, and Power sectors through financial year 2027 and 2028 are expected to be significant catalysts for share price appreciation. Vedanta is nearing completion of necessary clearances for its proposed demerger, with the process expected to commence in Q4 of the current financial year and conclude in phases by Q1 FY2027.