Vedanta rallies 10% in 8 days, hits new high; what's driving metal stock?

Vedanta stock has outperformed the market by surging 24% in the last six months. The company's portfolio of resources business provides advantages of scale, diversification and strong balance sheet.

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Vedanta share price today

 

Share price of Vedanta hit a new high of ₹542, gaining 2 per cent on the BSE in Thursday’s intra-day trade. In the past eight trading days, the stock price of the metal company has rallied 10 per cent owing to a positive outlook.

 

In the past six months, Vedanta has outperformed the market by soaring 24 per cent. In comparison, the BSE Sensex and BSE Metal index were up 5 per cent and 12 per cent, respectively.

 

What's driving Vedanta stock price?

 

As per media reports, S&P Global has revised its outlook on Vedanta's parent company, Vedanta Resources to positive from stable while reaffirming its B+ rating, citing stronger earnings visibility, steady cost reductions, and favourable metal prices that are expected to boost the company’s cash flows.

 

It also noted that lower interest expenses at the holding company level will aid in deleveraging the balance sheet of the company, reported PTI.

 

This outlook is positive for Vedanta as it signals improved financial stability, which can enhance investor confidence and potentially lower borrowing costs. On that note, we have a positive view on Vedanta due to its strategic capacity expansion amid healthy demand for aluminium and zinc, higher focus on value added products, improving operating efficiencies, and capital-efficient operation, ICICI Securities said in a note.

 

Meanwhile, on Wednesday, December 3, 2025, Vedanta informed the stock exchanges that it received approval from the National Company Law Tribunal (NCLT) for its resolution plan to acquire Incab Industries Limited under the ongoing Corporate Insolvency Resolution Process. 

 

Incab is engaged in manufacturing of power cables and industries wires which utilize copper and aluminum as the key raw material. With this acquisition, Vedanta shall expand into the downstream copper and aluminum industry. Vedanta will take 100 per cent shareholding and full management control of Incab Industries, with an upfront acquisition cost of ₹545 crore funded through internal accruals, the company said.

 

Meanwhile, the US has added silver and copper to its critical minerals list - a move expected to strengthen the long-term demand outlook for these metals. In India, the government has identified 30 critical minerals vital to the nation’s economic development and energy transition. Vedanta is among the world’s leading players with a diversified presence across key critical minerals. Of the 34 blocks auctioned nationwide, Vedanta successfully secured 10 critical mineral blocks including nickel, cobalt, copper, graphite and potash, the company said in an update. 

 

Nuvama Institutional Equities sees more upside in Vedanta’s stock price

 

Vedanta’s portfolio of resources business provides advantages of scale, diversification and strong balance sheet. The company benefits from ownership of low cost, cash rich zinc-lead-silver (Zinc India) businesses. It has globally competitive unit production costs in zinc, led by its quality captive mines. Analysts at Nuvama Institutional Equities believe that future growth is likely to be delivered by a volume uptick in key divisions - aluminium, zinc, and cost efficiencies at aluminium operations.

 

Vedanta’s focus on demerger, delivery and deleveraging (3Ds) is on course to pay off, supported by tailwinds of commodity prices. The likely favourable outcome by NCLT in December 2025 (demerger likely by Q4FY26-end), removal of overhang (not buying JP Associates) and further ~₹20 dividend per share by January 2026 are additional triggers, the brokerage firm said.

 

Analysts expect EBITDA to increase at a compound annual growth rate (CAGR) of 16 per cent over FY25–28E on the back of lower aluminium CoP, aluminium and zinc volume growth and higher commodity prices. Consolidated net debt is likely to fall to ₹61,000 crore by end-FY27, it added, with a ‘BUY’ rating on Vedanta and target price of ₹686 per share.    =================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.