# Motilal Oswal Sets Rs 540 Target on Vedanta Aluminium Amid Strong Multi Year EBITDA Growth Forecast

> Brokerage firm Motilal Oswal has maintained a Buy rating on Vedanta Aluminium with a target price of Rs 540 per share, citing volume growth, cost reductions, and strong domestic demand.

**Type:** article · **Category:** Market · **Published:** 2026-08-26 · **Source:** TrendKia
**Canonical:** https://trendkia.com/en/market/motilal-oswal-ne-vedanta-aluminium-para-jataya-bharosa-540-rupaye-ka-lakshya-mulya-taya-kiya-22202 · **Language:** English
**Tags:** Vedanta Aluminium, Motilal Oswal, Stock Market, Metal Stocks, Target Price, Anil Agarwal

Anil Agarwal led metal producer Vedanta Aluminium Limited witnessed buying momentum on Wednesday's trading session on BSE as brokerage major Motilal Oswal issued a highly optimistic research note on the company. Highlighted by solid volume expansion, backward integration efforts, and expanding margins, the brokerage reiterated its positive stance on the stock. Trading in positive territory early in the day, the aluminium manufacturer benefits from robust domestic consumption in India along with global supply constraints driven by China's structural production ceiling.

## Intraday Trading Performance and Market Valuation
During Wednesday morning's market action, shares of Vedanta Aluminium opened on a strong note and were recorded trading 0.69% higher at Rs 450.8 per share on the BSE at 9:33 am. The company's total market capitalization reached Rs 1,76,162.98 crore during this period. Over the course of the session's early trade, the stock touched an intraday high of Rs 452.20 per share while recording an intraday low of Rs 448.90 per share.

Looking at historical trading patterns over the past year, Vedanta Aluminium scaled its 52-week high of Rs 538 per share on June 15, 2026. Conversely, the scrip touched its 52-week low of Rs 421.65 per share on June 29, 2026. Over a shorter timeframe, the metal equity has generated a positive return of around 3.8% within a single month, demonstrating steady recovery and investor interest.

## Motilal Oswal Investment Rating and Target Price
In its comprehensive report released on Wednesday, August 26, domestic brokerage Motilal Oswal maintained its 'Buy' recommendation on Vedanta Aluminium shares, fixing a target price of Rs 540 per share. Based on a Sum of the Parts (SoTP) valuation methodology evaluating estimates for fiscal year 2028, the financial services firm indicated that the stock currently trades at an attractive multiple of 5.3x FY28E Enterprise Value to EBITDA (EV/EBITDA).

According to analysts at Motilal Oswal, the ongoing backward integration projects and an increasing share of value-added products (VAP) offer high visibility regarding future cash flows. "The stock currently trades at 5.3x FY28E EV/EBITDA," stated Motilal Oswal in its research note, emphasizing that the underlying structural cost reductions will sustain multi-year earnings momentum.

## Financial Growth Forecasts and Industry Dynamics
Motilal Oswal projects significant financial expansion for the producer across key performance parameters. Over the period spanning FY26-28, the brokerage forecasts consolidated revenue to grow at a Compound Annual Growth Rate (CAGR) of ~11%. Meanwhile, consolidated EBITDA is expected to expand at ~18% CAGR, and profit after tax (PAT) is projected to post an impressive ~23% CAGR. This multi-year growth trajectory is anchored by volume expansion, downstream product contributions, and structural cost optimizations.

The broader macroeconomic environment remains conducive for Indian aluminium producers. Tightening global supplies resulting from China's strict cap on smelting capacity have supported global market stability. Simultaneously, India's infrastructure development and industrial manufacturing expansion are driving resilient domestic aluminium demand, positioning integrated players like Vedanta Aluminium to capture higher market share and healthier margins.

## Strong Quarterly Earnings Momentum
The upbeat brokerage outlook follows robust quarterly financial results reported by the company. Vedanta Aluminium posted a 33.8% year-on-year surge in net consolidated profit, reaching Rs 5,629 crore compared to Rs 4,207 crore recorded in the corresponding period of the previous fiscal year. Quarterly operational revenue also climbed to Rs 21,393 crore, marking a 12% increase over the revenue generated in Q1FY26.

Furthermore, earnings before interest, tax, depreciation, and amortisation (EBITDA) for the quarter rose sharply to Rs 10,299 crore. This performance represents a 23.2% sequential growth compared to the prior quarter's EBITDA figure of Rs 8,352 crore. The combination of higher sales realization and cost control measures significantly boosted profitability across operating divisions.

## What this means for you
- **Across India:** For metal and manufacturing sector investors, growth in Vedanta Aluminium reflects strong domestic demand and industrial momentum.
- **For Stock Market Investors:** Motilal Oswal's target price of Rs 540 highlights potential medium term value appreciation for shareholders.

## Questions & Answers

### 1. What is the target price set by Motilal Oswal for Vedanta Aluminium?
Motilal Oswal has maintained a Buy rating on Vedanta Aluminium with a target price of Rs 540 per share.

### 2. How did Vedanta Aluminium perform in trading on Wednesday morning?
At 9:33 am on Wednesday, the stock traded 0.69% higher at Rs 450.8 per share on the BSE, with a market capitalization of Rs 1,76,162.98 crore.

### 3. What are the 52-week high and low figures for Vedanta Aluminium?
The stock reached a 52-week high of Rs 538 on June 15, 2026, and a 52-week low of Rs 421.65 on June 29, 2026.

### 4. What was the growth in quarterly net profit reported by the company?
Vedanta Aluminium recorded a 33.8% year-on-year increase in net consolidated profit to Rs 5,629 crore, up from Rs 4,207 crore in the prior-year period.

### 5. What financial growth projections has the brokerage set for FY26-28?
Motilal Oswal forecasts consolidated revenue, EBITDA, and PAT to grow at ~11%, ~18%, and ~23% CAGR respectively over FY26-28.

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