Vedanta Power, Vedanta Oil, Vedanta Iron shares jump; how do the demerged stocks stack up now?

Shares of Vedanta Power Ltd, Vedanta Oil and Gas Ltd and Vedanta Iron and Steel Ltd rallied in Wednesday's trade, with Vedanta Power leading the gains. At the last check, Vedanta Power surged 12.43 per cent to Rs 34, while Vedanta Oil climbed 6.92 per cent to Rs 32.60. Vedanta Iron was locked in the 5 per cent upper circuit at Rs 30.28. In contrast, Vedanta Aluminium Metal Ltd was trading 0.59 per cent lower at Rs 371.15.

What analysts say about Vedanta demerged stocks

On Vedanta Power, Ravi Singh, Chief Research Officer at Master Capital Services, said, "Despite today's sharp move, the stock remains nearly 35 per cent down from its all-time high level. Investors may consider staggered accumulation at around Rs 30, while monitoring earnings growth, valuation and assessing the company's outlook, cash flows and long-term earnings potential."

For Vedanta Iron, Singh noted that the company's losses remain a key concern despite its revenue performance. Investors may wait for a few more quarters for signs of financial improvement and consider entry if the stock decisively breaks above Rs 34, subject to risk assessment.

Vedanta Oil is currently trading nearly 30 per cent below its all-time high, Singh said, adding that investors may wait for earnings improvement and consider entry above Rs 34–35, subject to financial performance.

On Vedanta Aluminium, Singh highlighted that the stock is also trading around 30 per cent below its all-time high and has seen weak price momentum. Investors should wait for sustained recovery before considering fresh positions, he also said.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, stated, "For any kind of serious investment decision, I prefer to wait for a few quarters and monitor how the results pan out of these companies."

Technical view

Virat Jagad, Senior Technical Research Analyst at Bonanza, said, "Vedanta Power's trend remains bearish, with the price trading below the 50-period exponential moving average. Support is placed at Rs 30.50–31, while resistance lies in the Rs 34.80-36 range. A sustained breakout above Rs 34.80 could improve the short-term structure and signal a potential recovery."

On Vedanta Oil, Jagad stated, "The stock remains weak. Support is placed at Rs 30–30.25, while resistance lies at Rs 35.40–36.10. A sustained move above the resistance zone would improve the short-term structure. Fresh buying should be considered only after confirmation of a trend reversal."

Jagad also shared a bearish broader trend for Vedanta Iron. "The broader trend remains bearish, although the stock is attempting to form a base around Rs 29.30. Immediate resistance lies at Rs 31–32.50. A sustained move above Rs 32.50, followed by a breakout above Rs 34.50, could strengthen the recovery."

On Vedanta Aluminium, Jagad noted, "The stock remains in a strong downtrend. Immediate support is placed at Rs 367, while Rs 400–401 acts as a major resistance zone. A breakdown below Rs 367 could trigger further downside."

Vedanta's demerger resulted in four independent companies: Vedanta Oil, Vedanta Iron, Vedanta Power and Vedanta Aluminium.

Commenting on the future roadmap, Vedanta Group Founder and Chairman Anil Agarwal said the demerger has created focused businesses with significant growth potential.

Highlighting the opportunities in India, Agarwal said the group plans to invest $20 billion over the next five years. "Each of these companies has the potential to reach $100 billion in revenue," he added.