MUMBAI, January 7, 2026, 23:15 (IST)
- Vedanta touched a 52-week high of 629.90 rupees and closed near flat at 622 rupees
- Broker targets run from 625 to 686 rupees as the group pushes a five-way demerger plan
- The stock’s RSI climbed to 78.6, a level traders often tag as “overbought”
Vedanta Ltd shares touched a 52-week high of 629.90 rupees on Wednesday before giving back most of the move, ending almost flat at 622 rupees.
The jump mattered because it came in a choppy session for Indian stocks, with investors scanning trade and geopolitical headlines ahead of the earnings season. “Markets remain sensitive to trade and geopolitical developments,” said Hitesh Tailor, a research analyst at Choice Equity Broking. Reuters
Brokerage targets have moved up as the rally has stretched into a month-long run. Kotak Securities has a target of 650 rupees, Investec has raised its target to 635 rupees, and Nuvama put fair value at 686 rupees, according to local media reports.
Much of that optimism hangs on Vedanta’s planned demerger — a carve-up into stand-alone listed businesses — which investors see as a way to put cleaner valuations on each unit. It also sets up a string of milestones in early 2026, including quarterly results and regulatory steps tied to the split.
Under the plan, the group would separate aluminium, oil and gas, iron and steel, and power into distinct listed entities, while the parent would keep its stake in Hindustan Zinc and “future-facing” businesses. Shareholders are set to receive equity shares in each of the four new entities in proportion to their existing holdings.
Emkay Global, which had a 625-rupee target on Vedanta, argued Hindustan Zinc’s exposure to silver was still not fully reflected in valuations. The brokerage estimated EBITDA — a measure of operating profit — at 258 billion rupees at spot prices versus 220 billion rupees in consensus forecasts, and said “silver exposure is underpriced”; Trendlyne data showed 13 analysts with a “buy” view on Vedanta. Goodreturns
Nuvama expects EBITDA to rise at a 16% compound annual growth rate (CAGR), or average yearly pace, over FY25-FY28, helped by lower aluminium cost of production and higher volumes. It also forecast consolidated net debt falling to 61,000 crore rupees by end-FY27, part of a broader deleveraging pitch that has stayed in focus for the group.
But the run has started to look stretched on the charts: Vedanta’s 14-day relative strength index (RSI), a momentum indicator, rose to 78.6, above the 70 level many traders treat as overbought. The demerger still needs other regulatory approvals, and Vedanta said a customs penalty and fine on its Balco unit would not have a material financial impact.
