Vedanta shares have reached new highs following a significant target price revision from brokerage firm Nuvama on Wednesday, January 14. The mining conglomerate owned by Anil Agarwal has received the most bullish projection on the street, with analysts projecting substantial upside potential based on multiple growth catalysts.

Nuvama Raises Target Price to ₹806

Nuvama has maintained its "buy" rating on Vedanta while raising the price target by 18% to ₹806 from the previous ₹686. This revised target represents the highest among 14 analysts covering the stock and implies an upside potential of 27% from Tuesday's closing levels.

Demerger Progress Drives Optimism

The brokerage highlighted that Vedanta is in the final stages of receiving statutory clearances for its demerger into five different listed entities. This corporate restructuring is expected to lead to significant value unlocking for shareholders. The demerger process has been a key catalyst driving investor interest in the stock.

Nuvama's investment thesis is further supported by strong commodity prices, ongoing cost reduction initiatives, and anticipated volume growth across the company's operations. These factors collectively strengthen the case for continued outperformance.

Enhanced Financial Projections

The brokerage has revised its financial estimates upward to reflect improved market conditions:

These enhanced projections factor in higher commodity prices, which are expected to drive Vedanta's EBITDA growth at a Compounded Annual Growth Rate of 20% over the financial year 2025-2028 period.

Market Valuation and Analyst Sentiment

Nuvama noted that Vedanta's current market price has yet to fully factor in the value of its aluminium and zinc businesses, suggesting that other business segments are practically available at no additional cost. This valuation gap presents an attractive opportunity for investors.

The analyst community remains overwhelmingly positive on Vedanta's prospects:

• Buy ratings: 10 out of 14 analysts
• Hold ratings: 4 out of 14 analysts
• Sell ratings: 0 out of 14 analysts

Stock Performance

Vedanta shares are trading with gains of 3% on Wednesday at ₹656.50. The stock has demonstrated strong momentum, posting gains for five consecutive months and advancing nearly 10% in January alone. This sustained performance reflects growing investor confidence in the company's strategic initiatives and market positioning.

Vedanta shares surged to a new 52-week high on January 12, gaining significant momentum as investor sentiment strengthened ahead of the company's planned 1:5 demerger. The stock jumped 2.81% during the trading session, reaching ₹627 and demonstrating strong market confidence in the company's restructuring initiatives.

Strong Stock Performance Continues

The mining and metals conglomerate has delivered impressive returns across multiple timeframes, reflecting sustained investor interest in the company's strategic transformation.

NCLT Approves Major Restructuring Scheme

The rally gained additional momentum following the National Company Law Tribunal (NCLT) Mumbai Bench's approval of a comprehensive Scheme of Arrangement on January 9. The tribunal sanctioned the restructuring plan involving several key subsidiaries under Sections 230 to 232 of the Companies Act, 2013.

The approved scheme encompasses multiple subsidiaries including:

• Talwandi Sabo Power Limited (TSPL)
• Vedanta Aluminium Metal Limited
• Malco Energy Limited
• Vedanta Base Metals Limited
• Vedanta Iron and Steel Limited

Strategic Business Separation Initiative

According to the company's official communication, the reorganisation aims to separate Vedanta's diversified operations into focused business verticals. This strategic move will create distinct entities specializing in aluminium, power, iron and steel, and base metals operations.

Under the approved arrangement, Talwandi Sabo Power Limited, a wholly owned subsidiary, will assume control of Vedanta's Merchant Power Undertaking. The company filed the necessary exchange documentation on January 10, referencing earlier communications from September 16, 2025, and October 18, 2025.

Analyst Outlook and Valuation

Citi maintains a 'Buy' rating on Vedanta with a target price of ₹585. The brokerage firm notes that Vedanta's businesses currently trade at approximately 5x EV/EBITDA on a spot basis, indicating a conglomerate discount that could potentially reduce following the demerger as individual businesses begin independent trading.

The planned demerger represents a significant milestone in Vedanta's corporate strategy, with the company targeting completion by March 2026. This timeline provides investors with a clear roadmap for the anticipated structural changes and potential value unlocking across the separated business verticals.