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News Topical, Digital Desk : Brokerage firm Kotak Institutional Equities has become even more bullish on Anil Agarwal-led Vedanta. Following NCLT approval of the demerger, Kotak has upgraded Vedanta's stock for the second time. First, it upgraded from Reduce to Add and now it has upgraded to Buy. The target price has also been raised to ₹650. This has once again brought Vedanta into investor focus.
Brokerage house Kotak Institutional Equities' confidence in the shares of mining and metal sector giant Vedanta seems to be continuously strengthening. In its latest report released on Wednesday, December 17, Kotak has increased Vedanta's shares from "Add" to "Buy". Notably, this is the second upgrade in the last two months. Earlier in November, Kotak had upgraded Vedanta's shares from "Reduce" to "Add". Now, after the approval of the demerger, the brokerage believes that the picture of the company has become much clearer. \ With this, Kotak has increased Vedanta's target price from ₹550 to ₹650. This represents an upside of about 14% compared to the current price. Kotak's upgrade comes at a time when Vedanta has received approval from the NCLT for its long-delayed demerger plan. Following this news, Vedanta shares saw a sharp surge, closing at a 52-week high on Tuesday. Kotak says Vedanta is now on track to complete its demerger and restructuring plan by the end of FY26. According to the brokerage, this approval removes a major overhang for the company that had been suppressing the stock's valuation for a long time. The commodity cycle also appears to be in Vedanta's favor. According to Kotak's report, amid strong commodity prices, Vedanta is working on several growth projects in the aluminum and power segments, which are scheduled to be commissioned during FY26–FY27. This is expected to strengthen both the company's volume and cash flow. The brokerage estimates Vedanta's EBITDA to grow at a CAGR of 17% during FY25–FY28. EPS is projected to grow at a CAGR of approximately 24% during the same period. This is attributed to higher volumes, strong commodity prices, and operational efficiency. Kotak also stated that debt concerns related to Vedanta Resources have largely been addressed. This has increased market confidence in financial stability at the group level. Furthermore, Kotak has presented a Bull Case Scenario for Vedanta. In this scenario, if EBITDA exceeds estimates by 10%, the brokerage sees a target price of ₹770 for Vedanta shares, implying a potential upside of approximately 34% from current levels. Currently, Vedanta is covered by a total of 14 analysts, with 10 recommending a Buy, while 4 recommend a Hold. Significantly, no analyst is currently issuing a "sell" call on Vedanta.
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