CLSA initiated coverage on Vedanta Aluminium on Wednesday, June 24, with an “outperform” rating and a price target of ₹540, which implies an upside potential of 19% from Tuesday’s closing levels.
Why Is CLSA Bullish On Vedanta Aluminium?
CLSA wrote in its note that its “outperform” recommendation on Vedanta Aluminium is supported by a higher-for-longer Aluminium cycle and robust operational tailwinds.
The brokerage went on to add that backward integration is likely to lift the company into the first decile of the global cost curve. Near-term volume growth visibility is another positive trigger.
Vedanta Aluminium’s free cash generation will remain strong, even after CLSA assuming the Aluminium LME prices at a discount to the spot price, according to CLSA, and that will support deleveraging and dividend payout at the company for its shareholders.
CLSA also wrote that Vedanta Aluminium is trading at a discount to its peers, both domestic and global, on a financial year 2028 Enterprise Value to EBITDA basis, which, according to the brokerage, is “unwarranted”, given its improving cost profile and strong Free Cash Flow (FCF) yield.
Last week, Vedanta Aluminium had received bullish recommendations from both Citi and Kotak Institutional Equities. While Citi ascribed a target of ₹560 on the stock as well, Kotak expects the stock to rise to levels of ₹600.
Shares of Vedanta Aluminium ended 4.7% lower on Tuesday at ₹456. The stock recently exited from the Nifty Next 50 index, resulting in outflows of up to $150 million, as per Nuvama Alternative & Quantitative Research.
First Published: Jun 24, 2026 7:55 AM IST
