Vedanta Aluminium Shares Hit Record ₹465: Top Brokerages Predict Massive Rally with Targets Up to ₹585
Shares of Vedanta Aluminium Metal Limited (VAML) continued their strong upward momentum on July 31, breaking through Thursday's resistance to scale a fresh record high of ₹465. The impressive market rally comes on the heels of the company's robust financial scorecard for the first quarter. Backed by favorable London Metal Exchange (LME) conditions, optimized production volumes, and stringent cost controls, VAML reported a record EBITDA of approximately ₹10,500 crore. Financial markets have responded enthusiastically, fueled by projections that domestic aluminum demand will expand at a robust annual rate of 8% to 9%, touching 8 to 8.5 million tonnes by FY30.
Major Brokerages Issue 'BUY' Ratings with Targets Ranging from ₹525 to ₹585
Top-tier brokerage firms have flooded the counter with bullish recommendations, setting ambitious target prices that signal substantial upside potential from current levels of around ₹462. Investec has led the optimism with the highest target price of ₹585. Emkay Global maintained a buy rating with a target of ₹550, highlighting VAML's strict adherence to its cost guidance of $1,650 to $1,700 per tonne for FY27. Meanwhile, Nuvama Institutional Equities set a target of ₹540, noting that the upcoming commissioning of captive bauxite and coal mines in the second half of FY27 will likely drive hot metal production costs below $1,600 per ton by FY28. Citi has also joined the bullish consensus, issuing a 'Buy' recommendation with a target price of ₹525.
Long-Term Growth Triggers: Backward Integration and Value-Added Products
Domestic brokerage Motilal Oswal Financial Services (MOFSL) reaffirmed its positive thesis on the stock, setting a target price of ₹540. Analysts emphasize that VAML's ongoing backward integration projects, expanding share of high-margin value-added products, and strong cash flow generation capabilities position the company for stellar medium-term performance. As structural domestic demand for aluminum accelerates across infrastructure, electrical, and automotive sectors, VAML's strategic cost optimization initiatives are expected to significantly enhance its operating margins and deliver strong value to shareholders in the coming quarters.
