Shares of Vedanta Power Ltd, Vedanta Oil and Gas Ltd, and Vedanta Iron and Steel Ltd experienced significant rallies in Wednesday's trading session. This surge comes as these entities operate independently following Vedanta Group's demerger, creating focused businesses with distinct growth trajectories.
Demerged Entities See Gains
Vedanta Power led the charge, surging 12.43 percent to trade at Rs 34. Vedanta Oil and Gas also saw a notable increase, climbing 6.92 percent to Rs 32.60. Vedanta Iron and Steel was locked in the 5 percent upper circuit, reaching Rs 30.28. In contrast, Vedanta Aluminium Metal Ltd traded slightly lower, down 0.59 percent at Rs 371.15.
Analyst Perspectives on Investment
Market analysts are advising a cautious approach to these newly demerged stocks. Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, recommended waiting for a few quarters to observe the financial results of these companies before making any serious investment decisions.
Ravi Singh, Chief Research Officer at Master Capital Services, offered specific insights. For Vedanta Power, despite its recent sharp move, the stock remains approximately 35 percent below its all-time high. Singh suggested investors consider staggered accumulation around Rs 30, while closely monitoring earnings growth, valuation, cash flows, and long-term potential.
Regarding Vedanta Iron, Singh highlighted that losses remain a key concern despite its revenue performance. He advised investors to wait for signs of financial improvement over the next few quarters and consider entry if the stock decisively breaks above Rs 34, subject to a thorough risk assessment.
Vedanta Oil is currently trading nearly 30 percent below its all-time high. Singh recommended waiting for earnings improvement and considering entry above Rs 34–35, contingent on sustained financial performance. For Vedanta Aluminium, which also trades around 30 percent below its peak with weak price momentum, investors should await a sustained recovery before initiating new positions.
Technical Outlook
Virat Jagad, Senior Technical Research Analyst at Bonanza, provided a technical assessment for each entity:
- Vedanta Power: The trend remains bearish, with the price trading below the 50-period exponential moving average. Support is identified between Rs 30.50 and Rs 31, while resistance lies in the Rs 34.80-36 range. A sustained breakout above Rs 34.80 could improve the short-term structure.
- Vedanta Oil: The stock continues to show weakness. Support is placed at Rs 30–30.25, with resistance at Rs 35.40–36.10. A sustained move above the resistance zone would signal an improved short-term structure, with fresh buying advised only after confirmation of a trend reversal.
- Vedanta Iron: Despite attempts to form a base around Rs 29.30, the broader trend remains bearish. Immediate resistance is at Rs 31–32.50. A sustained move above Rs 32.50, followed by a breakout above Rs 34.50, could strengthen its recovery.
- Vedanta Aluminium: The stock is in a strong downtrend. Immediate support is at Rs 367, while Rs 400–401 acts as a major resistance zone. A breakdown below Rs 367 could trigger further downside.
Vedanta's Strategic Vision Post-Demerger
Vedanta Group Founder and Chairman Anil Agarwal commented on the future roadmap, stating that the demerger has successfully created focused businesses with significant growth potential. Highlighting opportunities within India, Agarwal announced the group's plans to invest $20 billion over the next five years. He expressed ambitious targets, noting that each of these newly independent companies has the potential to reach $100 billion in revenue.