Shares of Vedanta Limited hit a new high of Rs 642.50 on the back of
an extended rally in commodity prices that has taken the market capitalization
of the company at Rs 2.5 lakh crore in the trading session of January. The
shares have gained nearly 5.25% on a year-to-date basis.
The stock delivered a
return of over 54% over the past twelve months (January 13, 2025 to January 13,
2026) on the National Stock Exchange, significantly outperforming the benchmark
indices. On a total return basis, including dividends, Vedanta’s stock delivered
an even higher return of around 60% during the period. This performance is
approximately five times that of the flagship indices Sensex & Nifty 50 and
1.5 times the Nifty Metals index. The shares closed at Rs 637.20 on Tuesday.
As of the end of December,
Vedanta is the 23rd most valuable listed company in India, excluding
BFSI and PSU companies.
Vedanta’s stock price has been buoyed by potential medium-term upside in aluminium on the
London Metal Exchange (LME), volume growth, likely lower costs, and
expectations that the demerger will unlock value across the company’s sprawling
portfolio. Copper prices also crossed the $13,000-a-ton mark for the first
time, extending the recent rally.
Adding to the gains is the order by the NCLT's Mumbai bench on December
16 approving Vedanta’s demerger into five independent, pure-play businesses. As
per Vedanta, the demerger will result in five separate listed companies (including
the already listed Vedanta Limited), each with a clear strategic mandate,
focused management teams, and dedicated capital structures. According to the
company, the demerger is designed to unlock long-term value for shareholders
and provide investors with exposure to assets aligned with India’s growth and
global energy transition trends.
Vedanta’s subsidiary, Hindustan Zinc, is also benefiting from a rally
in silver prices, which has lifted its market cap above Rs 2.66 lakh crore as
of January 13 (NSE). The company’s stock has delivered nearly 50% returns over
the past year (January 13, 2025, to January 13, 2026). In December, global
research firm Jefferies initiated coverage on Hindustan Zinc, emphasizing the company’s positioning as the world’s
largest integrated zinc producer and among the top five global silver
producers.