Hopes of the commodity upcycle seem priced in for Vedanta stock

The group derives 38 per cent of its EBITDA from aluminium, 41 per cent of EBITDA from zinc and 14 per cent from oil

Mining and natural resources major Vedanta Limited (VEDL) has seen a surge in share price after a recent upgrade by CLSA. Indeed, the stock is up more than 30 per cent in the last month. The company has been hard to evaluate for a while because it is due for a complicated corporate restructuring into six separate companies and also the commodity cycle for industrial metals has been in a bearish trend. Indeed, the consolidated business is estimated to see an 8-9 per cent year-on-year (YoY) decrease in the January-March quarter (Q4) Ebitda (about 0.7 per cent down quarter-on-quarter or