Vedanta Aluminium Metal Ltd.’s shares are likely to remain in the spotlight after global brokerage Citi initiated coverage on the company with a bullish stance, citing a strong outlook for aluminium prices, improving balance sheet metrics, and structural cost advantages. The brokerage has assigned a ‘Buy’ rating with a target price of Rs 560 per share, implying an upside of nearly 20 per cent from the current market price.
Vedanta Aluminium is a newly carved-out entity following Vedanta Ltd.’s ongoing corporate restructuring, under which the diversified natural resources group is being split into multiple independent businesses. As part of this demerger plan, Vedanta announced the creation of four separate companies to house its key verticals, including aluminium, oil & gas, power, and iron & steel, while the parent entity, Vedanta Ltd., continues to exist.
The move is aimed at unlocking value by allowing each business to operate with greater strategic focus, attract sector-specific investors, and improve capital allocation transparency. Vedanta Aluminium, as a standalone entity, now houses the group’s aluminium operations, one of the largest in India.
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