1:5 Split By March 2026 Likely! Vedanta Ltd Stock Hit Back-To-Back New 52-Week High; BUY/SELL Time?

Vedanta Ltd, stock price has witnessed back-to-back record rally as 2025 nears its end. Billionaire Anil Agarwal-backed Vedanta touched yet another new 52-week high of Rs 616 apiece on BSE during December 29 trading session, despite receiving tax-related penalty orders. Investors optimism appears in Vedanta due to its upcoming mega demerger in 1:5 ratio which is expected by March 2026.

Vedanta Ltd Share Price:

At the time of writing, Vedanta stock price traded at Rs 613.95 apiece, up by 2.23% on BSE, with market cap of Rs 2,40,254.24 crore. In the early deals, Vedanta touched new 52-week high of Rs 616 apiece on BSE, extending its previous record rally.

Riding on the bulls, Vedanta has extended its surge to over 38% year-to-date.

Vedanta shares rally despite receiving tax-related penalty orders worth Rs 11.16 crore from December 25 to December 27.

A key booster to Vedanta shares is also due to the company becoming a successful bidder in respect of Depo Graphite - Vanadium Block. This receipt of Successful Bidder for Depo Graphite - Vanadium Block under Critical Mineral Auctions Tranche IV conducted by the Ministry of Mines, Government of India shall further strengthen the Company's critical minerals portfolio.

Vedanta Ltd Demerger:

Vedanta received NCLT approval for demerger of its business in the ratio of 1:5. Post demerger, Vedanta's businesses will operate as independent, sector specific companies, each positioned to capitalise on its respective market opportunities.

The five separate listed entities are:

- Vedanta Aluminium

- Vedanta Oil & Gas

- Vedanta Iron & Steel

- Vedanta Power

- Vedanta Limited.

It needs to be noted that Vedanta Limited will continue to be the parent company of Hindustan Zinc and incubating future-facing businesses.

With the NCLT approval, Vedanta has entered the execution phase of a transformational demerger that will result in five separate listed companies including already listed Vedanta Ltd.

How Vedanta Demerger Will Impact Shareholders?

Shareholders of Vedanta Limited will receive equity shares in each of the four resulting listed entities (in addition to their shareholding in Vedanta Limited) in proportion to their existing holdings, ensuring continuity of ownership while enabling direct participation in the growth trajectories of individual businesses.

This means that eligible shareholders will get 1 share each in the four newly demerged entities after completion.

The record date to identify eligible shareholders to be part of Vedanta's demerger, will be announced going forward.

As per Swastika Investmart, Vedanta's demerger is a landmark restructuring, aimed at unlocking hidden value and giving each business vertical enough room to grow independently. For shareholders, it presents both an exciting opportunity (more control, potential re-rating) and real risks (regulatory delays, financing issues).

When will Vedanta demerger complete? The company extended the timeline to complete its demerger by March 2026-end, as per various reports.

Vedanta Share Price Recommendation:

Vedanta Fundamentals:

As per Markets Mojo data, Vedanta's financial indicators reveal a company with strong management efficiency and healthy profitability. The return on capital employed (ROCE) stands at 31.42%, reflecting effective utilisation of capital resources. The company's ability to service debt is evident from a low Debt to EBITDA ratio of 1.20 times, indicating manageable leverage levels.

Analysts at ICICI Direct remain positive on Vedanta given the robust non-ferrous prices, strategic expansion at aluminium and zinc India, controlled leverage on
B/S, return ratios >20%, attractive dividend yield of ~6%.

What To Expect In 2026?

These analysts pointed out that Aluminium as per industry reports is expected to remain deficit in 2026 as well which shall further drive its prices higher. Meanwhile, ongoing supply constraints could sustain higher silver prices in 2026. Vedanta given its size as well as incremental capacities coming on stream in near to medium term is best placed to play upon this rising nonferrous metal prices. Its subsidiary Hindustan Zinc will benefit from rising silver prices (up 32% QoQ) given it is India's largest silver producer with ~800 MT of refining capacity. Notably, higher silver prices directly enhance profitability, as silver is a by-product with minimal processing cost, thereby supporting earnings for both Hindustan Zinc and Vedanta Ltd.

Hence, the analysts have set a Rs 650 target price on Vedanta with BUY rating.

About Vedanta Ltd:

Vedanta Ltd (VEDL), a subsidiary of Vedanta Resources, is diversified natural resources conglomerate with presence across aluminium, zinclead-silver, oil and gas, power, iron ore, steel, ferroalloys, and copper.

Operating India's largest primary aluminum metal capacity ~2.8 MTPA. Also enjoys leadership position in zinc and lead domains with mined metal capacity of ~1.2 MTPA and 4th largest silver producer globally.

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.