Vedanta Aluminium saw significant gains during Friday’s trading session. The rally followed the initiation of coverage by the brokerage firm Motilal Oswal, which suggests a potential 20% upside for the metal producer's stock. Investors reacted positively to the outlook provided by the analysts, pushing the share price higher throughout the morning session.
Market Performance Today
Shares of Vedanta Aluminium opened in positive territory on Friday. During the session, the stock traded 2.59% higher at Rs 455.95 per share on the BSE, bringing the company's total market capitalisation to Rs 1,79,467.26 crore. The stock reached an intraday high of Rs 455.85 and touched an intraday low of Rs 445.00 during the day’s trade.
Key Drivers for Growth
According to the research report by Motilal Oswal, Vedanta Aluminium is uniquely positioned to capitalize on both favourable industry dynamics and internal company structural changes. The brokerage notes that the firm is approaching a crucial earnings inflexion point, with EBITDA expected to grow at a CAGR of over 18% during the period of fiscal year 2026-28.
Growth is expected to be propelled by three simultaneous factors: a significant expansion in volume, structural reductions in costs, and an increasing contribution from value-added products (VAP). Based on these indicators, Motilal Oswal has set a target price of Rs 540 per share for the company.
Brokerage Analysis and Rating
The analyst report highlights that the stock currently trades at 5.4x EV/EBITDA based on the firm's FY28 estimates. The brokerage initiated coverage with a 'BUY' rating, grounded on an SoTP valuation. Analysts believe that the company's transition toward becoming more captive and backwards integrated will fundamentally support a re-rating of its valuation multiples, enhancing its attractiveness to long-term investors.
Financial Outlook and Projections
Motilal Oswal remains optimistic about the company’s ability to generate cash flow in the medium term. They forecast that the company's consolidated revenue, EBITDA, and PAT will grow at an approximate CAGR of 11%, 18%, and 23%, respectively, over the FY26-28 period. This growth is expected to be aided by volume increases, margin expansion, and a rising downstream contribution, providing high visibility for earnings over the coming years.
Potential Risks
While the outlook remains robust, the brokerage report also notes several risks that could impact the growth trajectory. These include potential delays in operational execution, volatility in global aluminium prices, inflation in input costs, and broader trade-related challenges that could affect the industry as a whole.
Recent Stock History
Looking at the historical data, the stock hit a 52-week high of Rs 538 on the BSE on June 15, 2026, when the market capitalisation stood at Rs 1,74,813.90 crore. Conversely, the shares dipped to a 52-week low of Rs 421.65 on June 29, 2026. Prior to this week's movement, the stock had experienced a decline of nearly 2.79% over the past seven days.
