Vedanta share value rise 5% as BofA upgrades inventory to Purchase, raises goal value by 75%. Right here’s why
The worldwide brokerage cited a extra constructive outlook for aluminium costs, supportive silver costs and a pretty dividend yield of over 6% estimated for FY27. It additionally highlighted that vital deleveraging on the mum or dad stage reduces the chance of any improve in brand-fee charges or inter-corporate loans.
BofA has raised its FY26E–FY28E EBITDA estimates for Vedanta by 16–21%, factoring in greater aluminium value assumptions, an elevated truthful worth for Hindustan Zincdepreciation within the USD-INR price and a decrease holding-company low cost of 5%, in contrast with 15% earlier.
Vedanta Q3 snapshot
Vedanta reported a 61% year-on-year soar in consolidated revenue to Rs 5,710 crore for the third quarter, with income rising 19% to Rs 45,899 crore. EBITDA climbed 34% year-on-year and 31% sequentially to a file Rs 15,171 crore, whereas margins expanded sharply to 41%, supported by greater steel costs, stronger premiums, improved volumes and price efficiencies.
The aluminium enterprise stood out operationally, with alumina manufacturing rising 57% year-on-year to a file 794 kilo tonnes, whereas aluminium price of manufacturing declined 11% year-on-year to $1,674 per tonne, aiding margin growth. Zinc India and worldwide zinc operations additionally delivered robust development on the again of beneficial commodity costs and improved volumes.
The stronger working efficiency translated into higher capital effectivity, with return on capital employed enhancing to 27%, up practically 300 foundation factors from a yr in the past.
Vedanta share value efficiency
Vedanta share value has been off to a powerful begin in 2026, rallying 20% on a year-to-date foundation. The inventory is up 60% within the final six months.
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