Vedanta shares upgraded by Kotak for the second time in two months after demerger; Check latest target

Brokerage firm Kotak Institutional Equities has upgraded shares of Anil Agarwal-owned mining conglomerate Vedanta Ltd. to "buy" from its earlier rating of "Add" in its latest note on Wednesday, December 17.

This is the second upgrade by Kotak Institutional Equities of Vedanta in the last two months. Earlier in November, the brokerage had upgraded the stock to "Add" from "Reduce" earlier.

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 ended with gains of over 4% on Tuesday after the NCLT approval at ₹572.