Vedanta shares 20% 'undervalued' after demerger? Here is the maths
Anil Agrawal-led Vedanta traded ex-date for demerger of four new companies, the mining & metal major has disclosed the cost of acquisition of the shares for the shareholders.
- May 21, 2026,
- Updated May 21, 2026 2:44 PM IST
Vedanta share price: Anil Agrawal-led Vedanta Ltd traded ex-date for demerger of four new companies nearly 20 days ago, the mining & metal major has disclosed the cost of acquisition of the equity shares for the shareholders for existing and resulting companies, which help the investors to understand the fair value of Vedanta.
According to the exchange filing, Vedanta informed that 52.34 per cent value consisted of existing Vedanta Ltd, which mostly comprises of his zinc and silver business, while the remaining 47.66 per cent constitute of other companies including Vedanta Aluminium Metal,, Malco Energy, Vedanta Iron & Steel and Talwandi Sabo Power.
Based on this exchange filing, shares of Vedanta settled at Rs 773.60 on April 29, before trading ex-date on April 30. The record dates for demerger was fixed as May 1, 2025 but stock market observed a holiday on the account of Maharashtra Day on May 1. Thus the stock trade ex-spin off on April 30, itself.
Based on the numbers given in the release, the fair value of existing Vedanta should be Rs 404.90 per shares (52.35 per cent of Rs 773.60). Share of Vedanta began to trade at Rs 289.50 post demerger, but the stock has gained 17 per cent from those levels to rise to Rs 338 on Thursday. Despite this rise, shares of Vedanta are 'apparently' 20 per cent below from its given 'fair value' in the filing.
Post demerger and Q4 earnings, BP equities shares its report on Vedanta. It said Vedanta’s continuing operations now form a focused zinc-silver-copper business, with profitability visibility improving after the demerger. Integrated operations, including captive mines and smelters, should help higher metal realisations flow into earnings, it noted.
The brokerage expects silver, zinc and copper prices to stay supportive on demand from electrification, renewable energy, infrastructure and EVs, though the FY26 rally is unlikely to repeat at the same pace, keeping FY27-FY29 growth moderate. It also cited lower conglomerate discount and strong internal cash generation, and retained a buy rating with a target price of Rs 387.
For the quarter ending March 31, 2026, Vedanta reported a 89 per cent year-on-year (YoY) jump in the net profit to Rs 9,352 crore, while its revenue surged 29 per cent YoY to Rs 51,524 crore. Its Ebitda for Q4FY26 rose 59 per cent YoY to Rs 18,447 crore, while margins improved 915 basis points to 44 per cent for the quarter.
Vedanta’s demerger marks a shift from a diversified structure to five focused, sector-leading businesses, each with clear strategic direction, capital allocation discipline and growth visibility. Anil Agarwal-led Vedanta operates across zinc, silver, copper, ferrochrome and critical minerals, supplying sectors from infrastructure to electronics and defence.
India contributes 65 per cent of revenue, while the rest comes from international operations and exports. Its core business remains the 61 per cent stake in Hindustan Zinc. Brokerages are awaiting clarity on the stock after the spin-off.
Vedanta share price: Anil Agrawal-led Vedanta Ltd traded ex-date for demerger of four new companies nearly 20 days ago, the mining & metal major has disclosed the cost of acquisition of the equity shares for the shareholders for existing and resulting companies, which help the investors to understand the fair value of Vedanta.
According to the exchange filing, Vedanta informed that 52.34 per cent value consisted of existing Vedanta Ltd, which mostly comprises of his zinc and silver business, while the remaining 47.66 per cent constitute of other companies including Vedanta Aluminium Metal,, Malco Energy, Vedanta Iron & Steel and Talwandi Sabo Power.
Based on this exchange filing, shares of Vedanta settled at Rs 773.60 on April 29, before trading ex-date on April 30. The record dates for demerger was fixed as May 1, 2025 but stock market observed a holiday on the account of Maharashtra Day on May 1. Thus the stock trade ex-spin off on April 30, itself.
Based on the numbers given in the release, the fair value of existing Vedanta should be Rs 404.90 per shares (52.35 per cent of Rs 773.60). Share of Vedanta began to trade at Rs 289.50 post demerger, but the stock has gained 17 per cent from those levels to rise to Rs 338 on Thursday. Despite this rise, shares of Vedanta are 'apparently' 20 per cent below from its given 'fair value' in the filing.
Post demerger and Q4 earnings, BP equities shares its report on Vedanta. It said Vedanta’s continuing operations now form a focused zinc-silver-copper business, with profitability visibility improving after the demerger. Integrated operations, including captive mines and smelters, should help higher metal realisations flow into earnings, it noted.
The brokerage expects silver, zinc and copper prices to stay supportive on demand from electrification, renewable energy, infrastructure and EVs, though the FY26 rally is unlikely to repeat at the same pace, keeping FY27-FY29 growth moderate. It also cited lower conglomerate discount and strong internal cash generation, and retained a buy rating with a target price of Rs 387.
For the quarter ending March 31, 2026, Vedanta reported a 89 per cent year-on-year (YoY) jump in the net profit to Rs 9,352 crore, while its revenue surged 29 per cent YoY to Rs 51,524 crore. Its Ebitda for Q4FY26 rose 59 per cent YoY to Rs 18,447 crore, while margins improved 915 basis points to 44 per cent for the quarter.
Vedanta’s demerger marks a shift from a diversified structure to five focused, sector-leading businesses, each with clear strategic direction, capital allocation discipline and growth visibility. Anil Agarwal-led Vedanta operates across zinc, silver, copper, ferrochrome and critical minerals, supplying sectors from infrastructure to electronics and defence.
India contributes 65 per cent of revenue, while the rest comes from international operations and exports. Its core business remains the 61 per cent stake in Hindustan Zinc. Brokerages are awaiting clarity on the stock after the spin-off.