NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Domestic brokerage firm Motilal Oswal Financial Services has initiated coverage on Vedanta Aluminum Metal Ltd. with a 'Buy' rating and a target price of Rs 540 per share, implying an upside of nearly 20% from the current market price of around Rs 451.
The brokerage believes Vedanta Aluminum has emerged as one of the most compelling structural opportunities in the global metals space following the demerger of Vedanta, which became effective on May 1, 2026. The demerger created a pure-play aluminum business that is now India's largest primary aluminum producer and the third-largest globally outside China.
The brokerage also highlightes that Vedanta Aluminium is approaching a significant earnings inflection point, with Ebitda anticipated to post over 18% CAGR over FY26-28. This growth will be driven by three simultaneous factors: volume expansion, structural cost reductions, and an increasing contribution from value-added products.
Importantly, the global aluminum market is experiencing structural tightening due to China's production cap, supply disruptions in Europe and Russia, and years of underinvestment outside China. This is further supported by India's robust demand growth and a substantial opportunity for import substitution.
At current market price, the stock trades at 5.4x EV/Ebitda on brokerage's FY28 estimate.
Motilal Oswal has initiated coverage on the stock with a Buy rating and a target price of Rs 540 (premised on an SoTP valuation).
The brokerage believes the transition toward becoming more captive and backward integrated will support a structural re-rating of valuation multiples.
Key risks to the thesis include execution risks, aluminum price volatility, input cost inflation, and trade-related challenges.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
