Target Price : ₹560
CMP : ₹472.20
Vedanta Ltd is a diversified natural resource group involved in the exploration, extraction, and processing of minerals and oil & gas. The company operates across several sectors, including zinc, lead, silver, copper, aluminium, iron ore, and oil & gas, with a presence in India, South Africa, Namibia, Ireland, Liberia, and the UAE. Additionally, Vedanta is engaged in commercial power generation, steel manufacturing, port operations in India, and glass substrate production in South Korea and Taiwan.
Vedanta is set for growth through vertical integration & capacity expansion in aluminium to drive volume growth and EBITDA. It focuses on scaling capacities and maintaining cost leadership in zinc, while robust production goals, enhanced recovery, and a favorable contract mix to boost O&G’s EBITDA.
Planned cash flows support dividend payouts, parent debt reduction, and balance sheet deleveraging. The strategic demerger into six sector-focused entities further aims to unlock value and drive sustainable growth across its diversified portfolio.
We expect Vedanta’s Revenue/EBITDA/PAT to grow at a 8.4/16/76.5 per cent CAGR over FY24-FY27. We Initiate coverage on the stock with Buy rating and Mar’26 TP of ₹560 set at 5.5x Mar’27.
