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Shares of Anil Agarwal-owned mining conglomerate Vedanta Ltd. have received their highest target on the street from brokerage firm Nuvama on Wednesday, January 14.
Nuvama maintained its "buy" rating on Vedanta and raised its price target by 18% to ₹806 from ₹686 earlier. Nuvama's target is the highest among the 14 analysts who have coverage on the stock. The revised price target implies an upside potential of 27% from Tuesday's closing levels.
Vedanta is in the final leg of receiving statutory clearances for its demerger into five different listed entities, which will lead to value unlocking for shareholders, Nuvama wrote in its note, adding that strong commodity prices, cost reduction, along with volume growth further propels their investment thesis.
The brokerage has increased its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) estimate for Vedanta for financial year 2027 by 17% and for financial year 2028 by 8% to factor in the higher commodity prices.
These higher commodity prices will help Vedanta's EBITDA grow at a Compounded Annual Growth Rate (CAGR) of 20% over financial year 2025-2028, Nuvama's note said.
Vedanta's current market price is yet to factor in the aluminium and zinc business value, while the other businesses are practically available for free, the brokerage said.
None among the 14 analysts tracking Vedanta have a "sell" rating on the stock. 10 of them have a "buy" rating while the other four have a "hold" recommendation.
Shares of Vedanta ended 1.5% higher on Tuesday at ₹637. The stock has gained for five months in a row, and is also up nearly 6% this month.
Nuvama maintained its "buy" rating on Vedanta and raised its price target by 18% to ₹806 from ₹686 earlier. Nuvama's target is the highest among the 14 analysts who have coverage on the stock. The revised price target implies an upside potential of 27% from Tuesday's closing levels.
Vedanta is in the final leg of receiving statutory clearances for its demerger into five different listed entities, which will lead to value unlocking for shareholders, Nuvama wrote in its note, adding that strong commodity prices, cost reduction, along with volume growth further propels their investment thesis.
The brokerage has increased its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) estimate for Vedanta for financial year 2027 by 17% and for financial year 2028 by 8% to factor in the higher commodity prices.
These higher commodity prices will help Vedanta's EBITDA grow at a Compounded Annual Growth Rate (CAGR) of 20% over financial year 2025-2028, Nuvama's note said.
Vedanta's current market price is yet to factor in the aluminium and zinc business value, while the other businesses are practically available for free, the brokerage said.
None among the 14 analysts tracking Vedanta have a "sell" rating on the stock. 10 of them have a "buy" rating while the other four have a "hold" recommendation.
Shares of Vedanta ended 1.5% higher on Tuesday at ₹637. The stock has gained for five months in a row, and is also up nearly 6% this month.
