According to reports from CNBC TV18, Vedanta shares have experienced a remarkable 10x surge from their delisting price of ₹87 in 2020 to current levels. However, the stock has faced recent pressure, declining 4% over the last three sessions as some investors choose to book profits after the substantial rally. The market remains divided, with some investors viewing the rally as complete while others believe the growth story continues.
As reported by CNBC TV18, Vedanta benefits significantly from currency movements, with every one-rupee depreciation against the dollar boosting EBITDA by ₹900-950 crore. This currency advantage provides a substantial tailwind for the company's financial performance. The weaker rupee environment continues to support the company's operational efficiency and profitability metrics.
According to CNBC TV18 analysis, the aluminium segment represents a significant value creation opportunity for Vedanta. For every 10% movement in LME aluminium prices, Vedanta's EBITDA could increase by approximately $445 million. During the first nine months of the financial year, average aluminium prices stood at around $2,634 per tonne. Supply disruptions in the Middle East have impacted smelting capacities and are not expected to recover soon, potentially supporting price levels.
As reported by CNBC TV18, brokerages like Kotak have already revised their aluminium price assumptions upward, though current estimates remain below current spot prices. The aluminium business is currently valued at approximately 6.5x EBITDA by firms like Kotak and Nuvama. However, there's potential for a rerating to a higher multiple closer to 7x, which could significantly increase aluminium's contribution to Vedanta's overall valuation. The combination of aluminium potential, macro tailwinds, and multiple expansion holds the key to Vedanta's next growth phase.
