Vedanta Ltd. shareholders are celebrating as the stock touched a fresh 52-week high of Rs 629.90 on January 7, 2026. With NCLT approving a historic 1:5 demerger and brokerages upgrading targets, is this the right time to invest?
Vedanta Stock Performance: January 2026 Update
Vedanta Limited continues its impressive rally in 2026, rewarding investors with consistent gains. The metal giant’s shares are currently trading at Rs 622 on BSE with a market capitalization of Rs 2,43,226.14 crore.
Year-to-Date Performance:
- 52-week high: Rs 629.90 (January 7, 2026)
- Annual returns: Nearly 39% gain
- Current price: Rs 622 per share
Game-Changing 1:5 Demerger: What Investors Need to Know
The National Company Law Tribunal (NCLT) has approved Vedanta’s ambitious demerger plan, creating five independent listed companies. This structural transformation will unlock significant value for shareholders.
Five New Entities Post-Demerger:
- Vedanta Aluminium – Focused aluminum business
- Vedanta Oil & Gas – Energy sector operations
- Vedanta Iron & Steel – Metals division
- Vedanta Power – Power generation assets
- Vedanta Limited – Parent company retaining Hindustan Zinc
Shareholder Benefits: Existing Vedanta shareholders will receive equity shares in all four new listed entities proportionate to their current holdings. This means if you hold 100 shares of Vedanta, you’ll receive shares in each of the five companies, ensuring continuity while enabling direct participation in individual business growth.
Emkay Global’s BUY Rating: Target Exceeded
Vedanta has already surpassed Emkay Global’s target price of Rs 625, but the brokerage maintains its BUY recommendation. Here’s why analysts remain bullish:
Key Growth Drivers:
Hindustan Zinc Advantage:
- Silver rally benefiting subsidiary operations
- FY27 zinc output guidance: ≥1,080kt
- Silver production target: ~700 tons
- Positioned in first quartile on global zinc cost curve
Earnings Upgrade Potential:
- Emkay estimates EBITDA of Rs 258 billion vs consensus Rs 220 billion
- 17% upgrade potential identified
- Each USD 1/oz movement in silver price changes Hindustan Zinc’s EBITDA by 1%
Recent Developments: BALCO Penalty
Vedanta’s subsidiary Bharat Aluminium Company Limited (BALCO) received a customs order confirming:
- Penalty: Rs 2 lakh
- Fine: Rs 15 lakh
- Issue: Incorrect IGST rate on imported goods
Management Clarification: The company has assured investors that this penalty will have no material or financial impact on overall operations.
What’s Next for Vedanta Investors?
Upcoming Catalysts:
- Q3 FY26 results announcement
- Demerger execution timeline
- Individual entity listing dates
- Operational updates from Hindustan Zinc
Investment Considerations:
✅ Bullish Factors:
- Strong 39% annual returns
- NCLT demerger approval unlocking value
- Subsidiary Hindustan Zinc benefiting from silver rally
- Brokerages maintaining BUY ratings
- Five separate growth opportunities post-split
⚠️ Risk Factors:
- Market volatility in metal sector
- Execution risks in demerger process
- Global commodity price fluctuations
- Regulatory compliance matters
Expert View: Should You Buy Vedanta Stock?
With the stock surpassing analyst targets and the transformational demerger underway, Vedanta presents a unique opportunity for investors seeking exposure to India’s metal and mining sector.
For Existing Shareholders: The 1:5 demerger offers unprecedented value unlock potential. Holding through the demerger could provide diversified exposure across aluminum, oil & gas, steel, and power sectors.
For New Investors: Current levels above Rs 620 may seem elevated, but the long-term structural story remains intact. Consider accumulating on dips with a 12-18 month investment horizon.
Investment Strategy:
- Long-term investors: Hold through demerger for maximum benefit
- Medium-term traders: Book partial profits, retain core holdings
- New entrants: Wait for corrections near Rs 580-600 levels
Final Takeaway
Vedanta’s journey from a diversified conglomerate to five focused listed entities marks a pivotal moment in India’s corporate restructuring history. With strong operational performance, favorable commodity trends, and strategic value unlocking, the stock deserves attention from serious investors.
Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Please consult with a certified financial advisor before making investment decisions.
Stay updated on Vedanta’s demerger progress and Q3 results. Subscribe for more stock market insights and analysis.
