Jaiprakash Associates: Vedanta shares in focus on CCI nod; technical chart hints at upside

Shares of Vedanta Ltd are in focus on Wednesday after the Competition Commission of India (CCI) approved its proposed acquisition of Jaiprakash Associates Ltd (JAL) under the corporate insolvency resolution process (CIRP) in accordance with the Insolvency and Bankruptcy Code, 2016 (IBC).

Vedanta Ltd, a subsidiary of Vedanta Resources Ltd, is listed on both the BSE and NSE. The stock is up 21 per cent in the past six months. Analysts noted the scrip has given a 15-year high Cup and Handle breakout on monthly charts. Such moves push prices out of multi year consolidation to trend higher leading to multifold returns in the next couple of quarters, Nuvama said.

"Given the recent history, te stock has made higher lows on monthly charts in the past 4-5 years of trading indicating steady demand at lower levels. Momentum is likely to kick in given that stock is trading near all time highs," Nuvama said.

As far as fundamentals are concerned, Emkay Global expects  Vedanta to report strong Q2FY26 results, with Ebitda of Rs 11,350 crore driven by a sequentially higher performance in its aluminium and zinc segments.

"We raise Vedanta's target price by 4.8 per cent to Rs 550 from Rs 525, reflecting upgraded FY27/28 Ebitda on Zinc and Aluminium gains and undervalued Ag exposure amid strong global repricing potential," it said.

ICICI Securities suggested a target of Rs 530 on the stock. "We pick Vedanta in the non-ferrous space. Vedanta shall be an outlier in Q2 ,driven by better realisations," the brokerage said.

Kotak Institutional Equities has forecast a 11 per cent sequential increase in Q2 Ebitda for Vedanta (up 12 per cent YoY), primarily due to higher commodity prices in aluminium and zinc segment, additionally aided by lower alumina costs.

Vedanta operates across natural resources, critical minerals, energy, and technology sectors, with key businesses in oil and gas, zinc, lead, silver, copper, iron ore, steel, nickel, aluminium, and power.

Jaiprakash Associates Ltd is an infrastructure and industrial conglomerate engaged in real estate, cement, hospitality, engineering, procurement, and construction contracting. Some of its group companies also operate in power, fertiliser, sports, and aviation segments. JAL is currently undergoing CIRP under the IBC.