Vedanta Aluminium Share Price: Buy This Metal Giant Stock After 1-To-5 Split? CLSA Gives 'Outperform' Rating

After the 1:5 split, Vedanta Group-backed stocks have been in focus in June. However, the newly listed Vedanta Aluminium has grabbed market, investors and expert attention. The stock is already the biggest rival of other siblings like Vedanta Ltd. and Hindustan Zinc in comparison to others like Vedanta Power, Vedanta Oil & Gas and Vedanta Iron & Steel, which are trading much cheaper. In a latest development, global brokerage CLSA has assigned an 'Outperform' rating to Vedanta Aluminium.

Vedanta Aluminium Ltd Share Price:

At the time of writing, Vedanta traded at Rs 455.20 apiece on BSE, down by 0.6% with a market cap of Rs 1,78,000.86 crore. From its listing day, Vedanta Aluminium is down by over 9%.

Vedanta Aluminium listed on June 15, 2026, and had reached its highest level of Rs 538 on the same day.

Despite the latest correction, Vedanta Aluminium is already bigger than Vedanta Ltd, who was once its parent company. While the newly listed aluminium giant is racing to overtake Hindustan Zinc.

Currently, Vedanta's market cap is around Rs 1.10 lakh crore and Hindustan Zinc is around Rs 2.30 lakh crore.

CLSA Bets Big On Vedanta Aluminium:

CLSA is bullish on Vedanta Aluminium because of its favourable aluminium cycle, operational growth prospects and improving cost competitiveness.

In CLSA's view, Vedanta Aluminium's ongoing backward integration should strengthen its leadership position in the segment. Also, the company's strong cash generation will support its deleveraging and maintain an impressive shareholder returns through means like dividends.

Overall, CLSA believes that Vedanta Aluminium's near-term volume growth visibility is robust, which would lift earnings in the coming years. Also, Vedanta Aluminium is trading at a discount compared to its peers.

Hence, CLSA has assigned an 'OUTPERFORM' rating with target price of Rs 540.

However, this is still the lowest target for Vedanta Aluminium in comparison to Citi and Kotak Institutional Equities. The highest target for the company is Rs 600 per share.

Citi, Kotak Institutional Equities On Vedanta Aluminium:

Citi has assigned a Buy rating and a target price of Rs 560 per share, while Kotak Institutional Equities has assigned a Buy rating with a fair value of Rs 600 per share, implying potential upside of up to 30% from current levels.

Kotak calls Vedanta Aluminium as a "crown jewel set to extend leadership", highlighting its position as India's largest aluminium producer and the world's third-largest producer outside China. With approximately 2.9 million tonnes per annum (mtpa) of installed capacity and an estimated 62% share of the domestic market, the company is well positioned to benefit from growing aluminium demand. Kotak expects EBITDA and profit CAGRs of approximately 23% and 33%, respectively, and believes the company deserves a premium valuation given its strong free cash flow profile, visible volume growth and significant cost-reduction opportunities.

Further, Citi has identified Vedanta Aluminium as its top India metals pick, citing its unique combination of volume growth, cost reduction opportunities, free cash flow generation and leverage to a favourable aluminium cycle. The brokerage expects EBITDA and profit CAGRs of approximately 15% and 26%, respectively, over FY26-FY29.

Both brokerages highlighted Vedanta Aluminium's industry-leading growth runway, with capacity additions and debottlenecking initiatives expected to drive approximately 6% volume CAGR through FY29. Citi expects captive alumina sourcing to increase to approximately 75% by FY27, supported by the expanded Lanjigarh refinery and commencement of the Sijimali bauxite mine.

Also, both brokerages also highlighted the company's long-term growth potential. Kotak believes Vedanta Aluminium's aspiration to double capacity to 6 mtpa provides one of the longest growth runways in the global aluminium industry, while Citi expects revenue to nearly double over the next three years, crossing Rs 1.8 lakh crore by FY29.

Vedanta 1:5 Split:

Vedanta is demerged into five entities and its effective date is on May 1, 2026. The company still continues to trade under the scrip name of Vedanta Ltd and will stay the parent company of its subsidiary, Hindustan Zinc.

Four new entities were listed on June 15, 2026. Among them are Vedanta Aluminum, Vedanta Power, Vedanta Oil & Gas, Vedanta Iron & Steel Ltd.

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.