Vedanta shares hit a 52-week high at ₹656.5; Nuvama raises target to ₹806, citing strong commodity prices, demerger approvals, and 20% CAGR EBITDA growth.
Shares of Vedanta Ltd., the mining conglomerate owned by Anil Agarwal, surged to a record high on Wednesday, trading at ₹656.5 on BSE, marking a gain of around 3% during intraday trading. The stock has shown consistent growth, rising nearly 10% in January alone and gaining for five consecutive months, reflecting strong investor confidence.
The latest momentum comes after brokerage firm Nuvama raised its price target on Vedanta to ₹806, an 18% increase from its previous target of ₹686. The new target is the highest among the 14 analysts tracking the stock and implies an upside potential of 27% from Tuesday’s closing price. Nuvama has maintained a “Buy” rating, reinforcing optimism around the company’s growth prospects. Among the 14 analysts covering Vedanta, 10 recommend “Buy” while four suggest “Hold,” and none have issued a “Sell” rating.
Demerger Set to Unlock Value
Vedanta is currently in the final stages of statutory approvals for its planned demerger into five separately listed entities, a move expected to unlock significant value for shareholders. Nuvama highlighted that the demerger, combined with strong commodity prices, cost efficiencies, and production volume growth, underpins a positive investment thesis for the stock.
The brokerage noted that Vedanta’s aluminium and zinc businesses are yet to be fully reflected in the current market price, while other divisions are available at minimal valuation, presenting an attractive opportunity for long-term investors.
EBITDA Estimates Upgraded
In its recent update, Nuvama raised Vedanta’s Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) estimates by 17% for FY2027 and 8% for FY2028. The revision accounts for sustained high commodity prices, which are expected to drive the company’s EBITDA at a 20% Compounded Annual Growth Rate (CAGR) over FY2025-2028.
“This growth reflects Vedanta’s robust operations, strategic cost management, and favorable market conditions for metals and mining commodities,” the brokerage said in its note.
Strong Market Performance
The stock has delivered remarkable returns over the past years. Vedanta’s share price has appreciated 50% in the last year and over 140% in two years, highlighting strong market performance and investor sentiment. The company’s market capitalization currently exceeds ₹2.57 lakh crore, with promoters holding 56.38% stake as of September 2025.
Despite quarterly fluctuations, Vedanta’s long-term fundamentals remain strong. In the July-September 2025 quarter, the company reported a consolidated net profit of ₹3,479 crore, down 37.9% year-on-year from ₹5,603 crore. Total income increased to ₹40,464 crore compared to ₹38,934 crore in the same quarter of 2024. For FY2025, the standalone revenue was ₹74,295 crore, with a net profit of ₹17,928 crore.
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Investor Takeaways
Market analysts believe Vedanta’s current valuation does not fully reflect the potential unlocked by the demerger and high commodity prices. The company’s strategic initiatives, including cost optimization and production growth, make it an attractive stock for long-term investors seeking exposure in the metals and mining sector.
“Nuvama’s revised target and buy recommendation underline Vedanta’s strong growth trajectory and potential for value creation for shareholders,” said a market expert. “With statutory approvals for the demerger in place and a favorable commodity outlook, the stock remains well-positioned for further gains.”
As Vedanta continues to capitalize on robust commodity prices and regulatory approvals, the stock is expected to remain a focal point for investors in 2026, with potential for significant upside from current levels.
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