Leading brokerage firms have increased their target price for Vedanta’s shares to ₹1,000 per share for the combined entity, following its performance in the March quarter and plans for a demerger. On Thursday, Vedanta shares (post-demerger) closed at ₹305.40 on the NSE.
Analysts have adopted a more positive outlook on Vedanta, citing improving fundamentals, enhanced free cash flow generation, cost-cutting measures, and significant potential for value unlocking.
Demerger Prospects
Nuvama anticipates that the aluminium, steel and iron ore, oil and gas, and power segments will likely be listed by June. The firm projects that the demerged entities could benefit from stable commodity prices and volume growth, predicting an EBITDA compound annual growth rate of 19-42% from FY26 to FY28.
Vedanta reported record performance in FY26, with annual revenue increasing by 15% year-over-year to ₹1,74,075 crore, and EBITDA rising by 29% year-over-year to ₹55,976 crore, attributed to strong operational execution, margin improvements, and ongoing deleveraging.
The UK-based Investec has assigned a fair value of ₹1,000 per share to the pre-demerger entity, citing a strong showing in Q4 earnings and resilience in the company’s aluminium sector. Investec stated, “With value crystallization increasingly visible and no deterioration in underlying operations, we reiterate our buy stance on Vedanta and recommend staying invested through the demerger process.” The firm valued Vedanta’s aluminium business at ₹606 per share and its flagship operations, including base metals, at ₹319 per share.
Valuation Revisions
Investec also indicated that while formalized post-demerger payout policies are pending, additional disclosures have clarified the company’s capital expenditures and leverage assumptions across the five resulting entities. As a result, they have raised their target multiple for the aluminium segment and increased their sum-of-the-parts-based target price to ₹1,000 per share.
Kotak Institutional Equities maintained a target price of ₹940, highlighting that Vedanta’s aluminium business is well-positioned for both volume growth and cost reductions through backward integration in FY27-28E. The commissioning of captive coal mines (Kurloi: 8 mtpa, Ghogharapalli: 20 mtpa) and the Sijimali bauxite mine (12 mtpa) is expected to lower costs in the same period.
CLSA, with a 12-month price target of ₹835 for the company, pointed out Vedanta’s improving cost dynamics, capacity expansion, and ongoing deleveraging as key factors for re-rating. The brokerage suggested that the restructuring could offer greater clarity into each segment’s financial profile as inter-company transactions and capital structures become more transparent.
Emkay Global Financial Services believes that the restructuring may enhance potential valuation re-rating, as singularly focused entities generally attract a premium over diversified mining companies, along with improved capital allocation driven by more specialized management teams.
Publish Time
This article was published on May 7, 2026.
