Vedanta Ltd, a mega metal company of India, continues to give solid returns throughout 2025 so far. Currently, the stock is shy of Rs 34.2 from hitting its Rs 500 mark. YTD, Vedanta has gained nearly 5%. The company is in focus for its demerger of businesses. Vedanta will be split into six new companies. Investors of Vedanta are also in for big win!
Vedanta Ltd Share Price:
After market hours of July 1st, Vedanta stock zoomed by 1.07% to end at Rs 465.80 apiece on BSE, with market cap of Rs 1,82,145.88 crore. At the current price, the stock is Rs 34.2 away from Rs 500 mark. YTD, Vedanta stock zoomed by 4.8% so far. In past one month, Vedanta rallied by 7.7%, and in past five sessions, the stock gained by at least 4.6%.
The stock's 52-week high and low is at Rs 527 apiece and Rs 362.20 apiece respectively. Its return on equity is at 23.80%.
Vedanta Ltd Demerger:
Vedanta is set to demerge into six listed entities. The demerger is of Vedanta and metals, power, aluminium, and oil and gas businesses to unlock potential value. After the exercise, six independent verticals - Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals and Vedanta Limited - will be created.
Under the demerger agreement, every eligible shareholder of Vedanta will get one share each in the five newly listed companies, against their 1 existing share in Vedanta. Hence, the demerger ratio is of 5:1.
"Our demerger proposal has received overwhelming support from both Shareholders and Creditors, with over 99.5% of both stakeholder groups voting in favour of the demerger. This is a remarkable endorsement of our decision. Post-demerger, every Vedanta shareholder will receive one new share in each of the newly demerged companies. We believe this will unlock significant value for our shareholders and position each entity for long-term success," said Vedanta's chief Anil Agarwal in the annual report.
BUY/SELL Vedanta Stock?
The consensus recommendation from 15 analysts for Vedanta Ltd. is BUY, as per Trendlyne data. Of the total, 8 analysts have suggested STRONG BUY on Vedanta, while 1 analyst give a BUY recommendation. EPS is expected to grow by 10.8% in FY26. The average target price on Vedanta is Rs 509.87 apiece, signalling a nearly 9.44% potential upside.
Earlier in May, Emkay Global in its note said, "VED reported a steady Q4FY25 with EBITDA of Rs116.2bn (+4.5% vs Emkay; +3.0% QoQ); the performance was mainly led by sequentially better profitability in its Aluminium and Zinc India businesses. Net debt stood at Rs532.5bn in Q4, down 7.2% sequentially, mainly driven by strong cash generation. The focus during the earnings call was on projects, mine developments, and power segment expansion timelines, with most projects coming online by 1HFY26, with the demerger targeted for completion by Sep 25. We reduce our earnings estimates by ~5% for FY26-27 and reiterate BUY while pruning our target price by 4.5% to Rs525, down from Rs550 earlier."
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.
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