Vedanta Demerged Entities Slump 5%: Which Stock Offers Best Value?

Following one of India's largest corporate restructurings in the metals and mining sector, the newly listed Vedanta entities faced a significant sell-off on their second day of trading. As shares of Vedanta Aluminium, Oil & Gas, and Power hit lower circuits, investors are left evaluating which of these specialized businesses holds the most promise for long-term wealth creation.

Market Reaction: The Post-Listing Slump

On the second day of trading, the market responded with volatility as the dust settled from the landmark demerger. Vedanta Aluminium saw its shares hit the 5% lower circuit limit, closing at Rs 475.65. Similarly, Vedanta Oil & Gas also touched its 5% lower circuit, trading at Rs 35.20. While Vedanta Power also opened 5% lower, it managed to recover some ground during the session, trading only marginally below its opening price.

Currently, all four newly listed stocks are placed in the Trade-to-Trade (T2T) segment, meaning every transaction requires compulsory delivery, which often limits immediate speculative volatility.

Vedanta Aluminium: The Group’s "Crown Jewel"

Despite the immediate price correction, most analysts view Vedanta Aluminium as the standout performer in the demerged universe. With a massive market capitalization of approximately Rs 2.06 lakh crore, it is the heavyweight of the group.

ICICI Securities has labeled the aluminium business as the group's "crown jewel," citing potential supply deficits driven by global geopolitical tensions. Furthermore, the company has aggressive expansion plans, aiming to double its production capacity to 60 lakh tonnes per annum. To achieve this, Vedanta has outlined capital expenditures of Rs 13,226 crore through FY28. Kaustubh Rane of Ashika Capital also highlighted the company's strong cash generation and integrated operations as compelling reasons for investment.

Assessing Vedanta Oil & Gas and Vedanta Power

While aluminium leads on growth, the other two entities present different value propositions:

Vedanta Oil & Gas : Abritant les actifs de Cairn Oil & Gas, cette entité est le principal acteur privé du secteur de l'amont en Inde. L'entreprise vise une capacité de production de 300 000 à 500 000 barils par jour grâce à un investissement prévu de 5 milliards de dollars. Des analystes comme Sunny Agrawal de SBI Securities suggèrent une juste valeur de 42 Rs par action, notant la croissance significative des réserves et des portefeuilles de gaz naturel.

Vedanta Power : Ce segment, qui gère plus de 4 GW de capacité installée dans plusieurs États, offre plus de stabilité qu'une croissance fulgurante. Avec l'objectif de devenir l'un des trois principaux producteurs privés d'énergie thermique en Inde d'ici l'exercice 2033 (FY33), il offre une visibilité sur les revenus grâce à des contrats d'achat d'électricité à long terme. Cependant, les avis des courtiers restent partagés, avec des valorisations allant de 35 Rs (CLSA) à 60 Rs (Kotak Institutional Equities). Les experts suggèrent que cette entité pourrait mieux convenir aux investisseurs axés sur le rendement plutôt qu'à ceux en quête de croissance.

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