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Vedanta Aluminium shares were in focus on Thursday after brokerage firms Citi and Kotak Institutional Equities initiated coverage on the stock with ‘Buy’ ratings.
{alcircleadd}The stock was trading 0.56 per cent higher at 9:40 am and had earlier risen as much as 2.93 per cent to INR 479 (USD 5.08) per share. Despite the gain, Vedanta Aluminium remains more than 10 per cent below its listing price of INR 522 (USD 5.53).
Vedanta Aluminium was listed on the stock exchanges on June 15 and was the only one of Vedanta’s four demerged businesses to debut at a premium.
Both Citi and Kotak highlighted favourable aluminium market fundamentals, planned capacity expansions and ongoing cost-reduction initiatives as key positives for the company. They also pointed to growing aluminium demand from sectors such as electric vehicles, renewable energy, data centres and copper substitution, while noting that global supply growth remains relatively limited.
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Citi initiated coverage with a Buy rating and a target price of INR 560 (USD 5.93). The brokerage said a positive outlook for aluminium prices, expansion-led growth, cost-efficiency measures and improving balance-sheet strength support its investment case.
Kotak Institutional Equities also started coverage with a Buy rating and assigned a fair value target of INR 600 (USD 6.36). The brokerage said Vedanta Aluminium is well positioned within India’s aluminium industry, supported by its scale of operations and planned expansion projects.
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