Vedanta share price target: Why brokerages see up to 24% upside after Q1 earnings?

Shares of Vedanta dipped over a percent to Rs 264 on the BSE on Friday after the metals and mining major reported a 72% year-on-year (YoY) surge in consolidated net profit to Rs 5,473 crore. EBITDA also jumped 98% YoY to a record Rs 8,469 crore in the first quarter of FY27.

Vedanta’s EBITDA margin expanded 985 basis points to 57%, excluding the copper business. Meanwhile, revenue from operations rose 54% YoY to Rs 24,205 crore from Rs 15,754 crore in the year-ago period.
Along with the Q1 earnings, Vedanta announced the appointment of Arun Misra as the company’s CEO, effective from August 1 this year till the end of July 2027 next year.

Nuvama on Vedanta share price

Vedanta, which now represents the residual company after the mega demerger, reported better-than-expected Q1 FY27 EBITDA, driven by a beat in Hindustan Zinc, said Nuvama. It is now factoring in LME zinc price of $3,200 per ton in FY27 and $3,000 per ton in FY28, and silver price of $65 per ounce in FY27 and $70 per ounce in FY28.


The brokerage has a ‘Buy’ call on the shares of Vedanta, with a target price of Rs 333 apiece, implying 24% upside potential. “We give a 30% holdco discount to its share in Hindustan Zinc. Stock movement is likely to mirror Hindustan Zinc’s share price movement,” it added.

Also Read | Vedanta Q1 Results: Profit jumps 72% YoY to Rs 5,473 crore; EBITDA soars 98% to record high

Motilal Oswal on Vedanta share price

Motilal Oswal maintained its Neutral rating on the shares of Vedanta with a target price of Rs 290 apiece, implying 8% upside potential. The domestic brokerage said that the company’s revenue came in line with estimates, driven by higher LME, premium, and forex gains.

“Management targets to maintain strong growth in earnings, driven by the upcoming capacity supporting higher VAP products and a favorable pricing environment. The guided capex plans are progressing well and will likely lead to further cost savings. Vedanta remains firm on its deleveraging plans and, going forward, higher cash flows will support both its expansion plans and deleveraging efforts. We largely maintain our FY27/28 estimates,” it added.

Vedanta share price

Vedanta shares rose nearly 1% to trade at Rs 267 apiece after the release of the results on Wednesday. The stock has gained around 1% in a week but declined around 5% in a month.

Vedanta currently has a market capitalisation of Rs 1.04 lakh crore.

Also Read | Vedanta announces demerger of real estate business into new listed company

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