Vedanta Limited (Vedanta) shares reached a new milestone of ₹599.80 on the NSE during Wednesday's intra-day trade. The stock recorded a gain of ~2% during the session and closed at its 52-week high. Over the past month, the company's stock has surged by nearly 20%, primarily driven by the positive sentiment surrounding regulatory approvals for its demerger plan.
Brokerage firms maintain a bullish stance on the Vedanta Group. The group's strategic capacity expansion plans are gaining momentum amidst healthy demand for aluminum, zinc, and silver, coupled with increasing new-age applications and improved operational efficiency. Anil Agarwal, Chairman of Vedanta Group, remains consistently optimistic about silver. In a post on the social media platform ‘X’, he wrote, “This year, silver has stepped out of the shadow of its precious metal sibling, gold, to deliver a stellar performance. In dollar terms, silver has recorded a year-on-year growth of 125%, while gold also performed well with a 63% return. The silver story has only just begun.”
Following the NCLT’s approval of the company’s long-pending demerger plan on December 16, Vedanta shares witnessed a rally for the sixth consecutive trading session. Under the restructuring plan, the listed Vedanta Limited will be split into five separate listed entities: Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Iron & Steel, and a restructured Vedanta Limited.
Earlier in December, S&P Global revised the rating outlook for Vedanta's parent company, Vedanta Resources, from ‘Stable’ to ‘Positive’, affirming a ‘B+’ rating. The agency cited strong earnings visibility, consistent cost reduction, and favorable metal prices as key factors expected to improve the company's cash flow.
According to Bloomberg, out of 14 analysts tracking Vedanta, 10 brokerage firms have given a ‘Buy’ rating. Brokerage firm Nuvama has set the highest target price of ₹686 for the stock. In the past six months, Vedanta's stock has outperformed the broader market with a jump of over 33%. During the same period, the NSE Nifty rose by approximately 5%, while the Nifty Metal Index gained about 15%.