Vedanta shares rise 2% to fresh 52-week high as analysts say demerger offers 'value unlocking' potential

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26 Aug, 2025 12:21

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The shares of Vedanta rose more than 2 percent on December 17 as brokerages issued bullish calls for the stock after the Mumbai bench of NCLT approved the company's demerger plan.

Vedanta shares hit a fresh 52-week high of Rs 580.45 per share, before paring some gains. The stock has now risen nearly 9 percent in just one week.

NCLT approves Vedanta's demerger plan:

The Mumbai bench of the National Company Law Tribunal (NCLT), composed of Charanjeet Singh Gulati and Nilesh Sharma, on December 16 said, "The sanction to the company scheme is granted."

Vedanta had filed its demerger scheme before NCLT Mumbai bench earlier. It aims to split into five different listed entities – Vedanta, Vedanta Aluminium Metal, Talwandi Sabo Power, Malco Energy, and Vedanta Iron and Steel. The company aims to complete the demerger by March 31, 2026.

ICICI Securities on Vedanta:

ICICI Securities said that Vedanta's demerger offers a value unlocking event as its high-growth aluminium and power business are expected to command better valuations compared to the conglomerate structure.

Kotak Institutional Equities on Vedanta:

Kotak Institutional Equities upgraded its rating on Vedanta shares to 'Buy' from 'Add', and raised its target price for the stock to Rs 650 per share. This implies an upside potential of more than 14 percent from the stock's previous closing price.

"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 domestic brokerage said.

Kotak said that buoyant commodity prices benefited Vedanta with multiple growth projections in its aluminium and power segments commissioning over 2025-26 (April-March) to FY27. The company's EBITDA and EPS are estimated to grow at a CAGR of 17 percent and 24 percent respectively over FY25 to FY28. This would be led by higher volumes and strong commodity prices, according to the brokerage.

Kotak added that debt concerns of its parent company, Vedanta Resources, are well behind and its 'bull-case scenario' on spot commodity prices projected a 10 percent higher EBITDA, CNBC-TV 18 reported, quoting Kotak.

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