1:5 Split Coming Soon By Metal Giant: Vedanta Ltd Stock Hits New 52-Week High; Buy More? Next Target

Vedanta Ltd, the leading metals and mining company, is going to be in focus in 2026 due to its upcoming demerger. Vedanta will be split into five businesses. While Vedanta will continue to trade on BSE and NSE as a parent company, its business will be divided into four other entities, such as aluminum, oil & gas, power and iron & steel. Like that, 1 Vedanta will become 5 different listed entities. Ahead of demerger, investors have held a bullish bias on Vedanta as the stock rallied by over 35% YTD and has touched a new 52-week high this week. Does that mean its time to book profit or buy more of Vedanta?

Vedanta Ltd Share Price:

After market hours on December 26, Vedanta stock price ended at Rs 601.10 apiece on BSE, up by 0.50% with market cap of Rs 2,35,053.43 crore. During the trading session of Friday, Vedanta even clocked a new 52-week high of Rs 607.65 apiece before correcting mildly.

YTD, the large-cap metal stock has climbed by over 35.2%. Vedanta's upcoming big events are Q3 results for FY26, operational performance data and demerger development.

Vedanta Ltd Demerger:

Earlier this month, 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 resulting entities will be as follows:

- Vedanta Aluminium

- Vedanta Oil & Gas

- Vedanta Iron & Steel

- Vedanta Power

- Vedanta Limited who will continue to be the parent company housing Hindustan Zinc Limited 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.

The reason behind demerger is to unlock long-term value for shareholders and provide investors direct exposure to high-quality, sector-leading assets aligned with India's growth and global energy transition trends.

As per the latest update, 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.

Buy Vedanta Stock?

Brokerages like ICICI Direct and Emkay Global have set a new target price of Rs 650 and Rs 625 on Vedanta.

In its note, analysts at Emkay said, "At spot prices, we estimate EBITDA of Rs 258 billion vs consensus' Rs220 billion, a ~17% upgrade potential. Each USD1/oz move in silver price changes HZ's EBITDA by 1%. We believe that silver exposure is underpriced and the recent runup in the
HZ and VEDL stock price reflects earnings upgrade potential."

Further, analysts at ICICI Direct said, "We 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%. We retained our BUY rating on Vedanta with SOTP based revised target price of Rs 650."

Know Everything About The Five Separate Entities That Will List On BSE And NSE After Demerger:

1. Vedanta Aluminium, a leading global fully integrated producer of aluminium, will operate with strong cost competitiveness, a diversified product portfolio, and a growing focus on value-added and low-carbon aluminium solutions.

2. Vedanta Oil & Gas, the largest private oil and gas exploration and production company in India, will function as a dedicated upstream exploration and production Company with a large onshore and offshore footprint, focused on enhancing domestic energy security through disciplined development and technology-led resource maximisation.

3. Vedanta Power, one of the largest private sector power generators in India, will house the existing independent power generation assets and pursue opportunities in India's evolving power market.

4. Vedanta Iron & Steel, India's leading producer of iron ore and steel, will bring together iron ore, steel, and value-added ferrous operations, providing a vertically integrated platform with scope for downstream expansion and green steel initiatives.

5. Vedanta Limited, as the residual entity, will continue to hold its stake in Hindustan Zinc Limited and act as an incubator for new and emerging businesses, including initiatives that are of strategic importance to India.

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