Vedanta shares rise 3%, hit record high as LME copper, aluminium prices gain. Will stock hit Rs 800?

Core Viewpoint - Brokerages are optimistic about Vedanta's stock, with Nuvama Institutional Equities raising the target price to Rs 806 from Rs 686, indicating an 18% upside potential from current levels [1][3]. Company Developments - The NCLT approved the demerger of Vedanta into five listed entities, with the base metals business remaining in Vedanta Ltd and four other entities being Vedanta Aluminium, Talwandi Sabo Power, Vedanta Steel and Iron, and Malco Energy [1][8]. - Vedanta is nearing the completion of regulatory approvals for its demerger, which is expected to enhance the company's investment thesis through strong commodity upcycle, cost optimization, and volume growth [2][8]. Financial Projections - Nuvama has revised FY27E/28E EBITDA estimates upward by 17% and 8% respectively, projecting a 20% CAGR in EBITDA over FY25–28E, reaching Rs 724 billion [3][9]. - Average price assumptions for FY27E and FY28E have been increased to $3,000 and $2,750 per tonne for aluminium, $3,000 and $2,900 per tonne for zinc, and $60 per ounce for silver [6][9]. - The INR–USD exchange rate assumption for FY27E and FY28E has been adjusted to 89 from 87.5 [6][9]. Market Performance - Shares of Vedanta were trading at Rs 696, reflecting a 2.6% increase from the previous close, with a peak of Rs 699, marking a 52-week high [8][9]. - Kotak Institutional Equities has set a target price of Rs 780 per share, highlighting that approximately 85% of Vedanta's FY2027E EBITDA will be driven by aluminium (50%), zinc (20%), and silver (15%) [7][9].