Kotak Institutional Equities has raised its price target on Vedanta to ₹650 from ₹550 earlier, implying a potential upside of 14% from current levels.
Vedanta’s upgrade by Kotak comes after the National Company Law Tribunal (NCLT) approved the demerger scheme of the company, which triggered a sharp surge in its stock price, which led to the stock closing at a 52-week high on Tuesday.”Vedanta has secured a much-delayed NCLT approval for its demerger and appears on track to conclude the restructuring by the end of financial year 2026,” the Kotak note said.
The brokerage went on to add that buoyant commodity prices place Vedanta in a sweet spot with multiple growth projects in Aluminium and Power segments commissioning over financial year 2026-2027.Vedanta’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) and Earnings Per Share (EPS) can rise at a Compounded Annual Growth Rate (CAGR) of 17% and 24% respectively over financial year 2025-2028, led by higher volumes and strong commodity prices, Kotak’s note stated.
Debt concerns for its parent, Vedanta Resources, are also well behind, according to the brokerage.
Kotak’s “bull case” scenario projects a 10% higher EBITDA and a price target of ₹770, which implies a potential upside of 34% from current levels.
14 analysts have coverage on Vedanta, of which 10 of them have a “buy” rating and four have a “hold” recommendation. No analyst covering Vedanta has a “sell” recommendation on the stock.
Shares of Vedanta have given up early gains, having made a new high of ₹580 on Wednesday. The stock currently trades little changed at ₹566.
