1 month ago
Vedanta Aluminium Analysts Issue Buy Ratings and Targets
Vedanta Aluminium is a big aluminium company in India.
After its first quarter results, several research firms said the stock is a good buy.
They gave different price targets, like Rs 525 to Rs 585.
They think the company will cut costs and grow its factories, which should make it earn more money.
The analysts also expect the company’s revenue and profits to grow a lot over the next few years.
Emkay Global maintains a BUY rating on Vedanta Aluminium with a target price of Rs 550, citing cost reduction and higher BALCO volumes.
Nuvama values VAML at 6.5x FY28E EV/EBITDA and targets Rs 540, expecting a drop in cost of production below $1,600/ton in FY28.
Citi recommends a BUY with a target of Rs 525, while Investec sets a higher target of Rs 585.
MOFSL highlights Vedanta's backward integration and domestic demand, forecasting 11% revenue, 18% EBITDA, and 23% PAT CAGR over FY26-28.
The company’s expansion of captive bauxite and coal mines and BALCO operations is expected to drive margin expansion.
- Who
- Vedanta Aluminium and investment research firms Emkay Global, Nuvama, Citi, Investec, MOFSL
- What
- Analysts issue buy ratings and target prices for Vedanta Aluminium shares
- Where
- India
- When
- Following Q1 results and FY26-28 forecasts
- Why
- Company’s cost reductions, expansion of captive mines and BALCO operations, and strong domestic demand are expected to boost earnings
Key facts
- Company
- Vedanta Aluminium
- Target Price (Emkay)
- Rs 550
- Target Price (Nuvama)
- Rs 540
- Target Price (Citi)
- Rs 525
- Target Price (Investec)
- Rs 585
- FY26-28 Revenue CAGR
- 11%
- FY26-28 EBITDA CAGR
- 18%
- FY26-28 PAT CAGR
- 23%
Quotes
Emkay Global
Investment research firm
“We forecast its consolidated revenue, Ebitda and PAT to grow at 11 per cent, 18 per cent and 23 per cent CAGR over FY26-28, aided by volume growth, margin expansion, and increasing downstream contribution.”
businesstoday.in
“Q2 earnings are likely to soften sequentially due to cost-related headwinds, the lower Al prices, and the impact of hedges—these should be partly offset by higher BALCO volumes.”
businesstoday.in
Sources
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