Newly demerged Vedanta Aluminium shares jumped as much as 3.5% to their day’s high of Rs 468 on the BSE on Thursday after Emkay initiated coverage with a Buy rating and a target price of Rs 550 (22% upside) from current market levels.
“We believe the market is yet to fully appreciate its structural earnings potential. We remain constructive on the medium-term aluminium outlook, with the global market likely to remain in deficit through CY28 despite Indonesia's announced capacity additions, given execution bottlenecks and China's effective 45mt production cap,” the domestic brokerage said in its coverage note.
