Vedanta Aluminium shares rise as the group denies stake-sale speculation

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Vedanta Aluminium shares gained 3.32 per cent after Vedanta Resources denied speculation that it planned to sell its stake in the aluminium business, while brokerages maintained bullish views on the stock.

Vedanta Aluminium came into focus after its parent, Vedanta Resources, dismissed reports and market speculation about a possible stake sale in the company.

The clarification also covered Vedanta Limited and other group businesses, including Vedanta Oil and Gas, Vedanta Power and Vedanta Iron & Steel. Vedanta Resources said it has no plans to sell its stake in any of these companies and remains focused on growth and value creation.

The development came as both Vedanta Aluminium and Vedanta Limited recorded gains on the BSE on Wednesday.

Vedanta Aluminium shares gain after stake-sale denial

Vedanta Aluminium shares closed 3.32 per cent higher at INR 462.55 on Wednesday, giving the company a market capitalisation of around INR 1.81 trillion. The stock touched an intraday high of INR 463.95 and a low of INR 448.90 during the session. Vedanta Limited also gained 4.3 per cent, closing at INR 286.65, with a market capitalisation of approximately INR 1.12 trillion.

The gains came after Vedanta Resources clarified that there was no plan to sell stakes in its group companies, removing some of the uncertainty surrounding the speculation.

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Brokerages remain bullish on Vedanta Aluminium

The group's clarification comes alongside positive views from analysts covering Vedanta Aluminium.

Motilal Oswal maintained a Buy rating on Vedanta Aluminium with a target price of INR 540 per share. The brokerage retained its FY28 estimates and said the stock's valuation remained attractive at 5.3 times FY28 estimated EV/EBITDA.

Emkay Global was also positive, maintaining a Buy rating and a target price of INR 550 per share. The brokerage said its valuation was supported by improving earnings visibility, cost leadership and favourable aluminium fundamentals.

With the stock closing at INR 462.55, the two target prices imply potential upside of roughly 16.7 per cent and 18.9 per cent, respectively.

Related: Vedanta Aluminium eyes next growth phase on higher volumes and lower costs

Vedanta focuses on demerger and growth

Vedanta Resources said its strategy remains centred on growth and value creation, rather than reducing its holdings through stake sales.

A major part of that strategy is the group's planned demerger into five focused businesses, alongside an ambitious growth capital expenditure pipeline, deleveraging and shareholder returns.

The demerger is intended to create more focused businesses, while the planned investment programme is expected to support expansion across the group's operations.

The company's positioning within India's growing aluminium industry remains an important part of the investment case highlighted by analysts.

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Vedanta Aluminium's outlook remains tied to aluminium fundamentals

The latest analyst calls suggest that the aluminium business continues to attract investor interest despite the recent stake-sale speculation.

Emkay Global pointed to cost leadership and favourable aluminium demand fundamentals as key factors supporting its INR 550 target, while Motilal Oswal retained its Buy view based on its FY28 valuation.

For investors, the immediate takeaway is that Vedanta Resources has ruled out a stake sale, while analysts remain constructive on Vedanta Aluminium's growth and earnings outlook.

The company's share-price performance and the brokerage targets will now provide a clearer indication of whether investor confidence can continue to build around Vedanta Aluminium's longer-term growth story.

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