Vedanta Aluminium shares are in focus during Thursday's trade, after the company recieved two 'Buy' initiations from Citia nd Kotak.
Vedanta Aluminium shares are trading 0.56% higher at 9:40 am, after trading as high as 2.93% to Rs 479 apiece. The stock is trading over 10% lower than its listing price of Rs 522.
Vedanta Aluminium listed on the exchanges on June 15, and was the only demerged business from Vedanta out of four entities to list at a strong premium.
Both brokerages cited favourable aluminium market conditions, planned capacity expansion and ongoing cost-efficiency measures. Demand from electric vehicles, renewable energy projects, data centres and copper substitution is expected to support aluminium prices, while supply growth remains limited.
Citi initiated coverage on Vedanta Aluminium with a Buy rating and a target price of Rs 560. The brokerage cited a constructive aluminium price outlook, growth potential from capacity expansion, efforts to reduce costs and improving balance-sheet metrics as key factors underpinning its view.
Kotak Institutional Equities initiated coverage with a Buy rating and a fair value target of Rs 600. The brokerage said Vedanta Aluminium is well positioned within the domestic aluminium sector, supported by its scale and expansion plans.
ALSO READ: Vedanta Aluminium Gets Double Initiations From Citi, Kotak — Check Reasons, Target Prices
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