Vedanta shares hit record high, cross Rs 575 mark; more upside ahead?

Shares of Vedanta Ltd hit their record high for the fourth straight session on Wednesday amid weakness in the broader market.Vedanta stock gained 1.86% to a fresh high of Rs 579.95 against the previous close of Rs 569.35. The metal major's shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages. Market cap of the firm rose to Rs 2.22 lakh crore. A total of 12.02 lakh shares of the firm changed hands amounting to a turnover of Rs 68.78 crore. 

The stock has risen 85% in three years and gained 122% in two years. In terms of technicals, the relative strength index (RSI) of Vedanta stands at 72.5, signaling the stock is trading in the overbought territory.

The rally comes amid Kotak Securities upgrading Vedanta to buy from the earlier rating of add in its latest note. Ita assigned a price target of Rs 650 share from the earlier Rs 550 per share. 

Vedanta has been upgraded by Kotak Institutional Equities for the second time in two months. Earlier in November, the brokerage had upgraded the stock to "Add" from "Reduce" earlier.

"Vedanta has secured a much-delayed NCLT approval for its demerger and appears on track to conclude the restructuring by the end of financial year 2026," the Kotak note said.

The brokerage also said buoyant commodity prices place Vedanta in a sweet spot with multiple growth projects in Aluminium and Power segments commissioning over financial year 2026-2027.

Debt concerns of Parent Vedanta Resources are well behind, added Kotak. 

Drumil Vithlani, Technical Research Analyst at Bonanza Portfolio said, "Vedanta is trading near the upper end of its recent range after a steady up-move, with price holding comfortably above all key moving averages, indicating a positive medium-term trend. The stock has repeatedly faced supply in the Rs 540–550 zone, and the latest move is again testing this resistance band. RSI is around the mid-60s, reflecting strong momentum but also approaching short-term overbought territory, which may lead to brief consolidation. As long as Vedanta sustains above Rs 520, the structure remains bullish and a decisive breakout above Rs 550 could open upside toward Rs 575– 590. On the downside, the rising trendline and 50-day EMA near Rs 475–480 form a strong support zone. Overall, the bias stays positive with a buy-on-dips approach preferred until the trendline support is violated."

Brokerage Nuvama has a price target of Rs 686 on the metal stock. 

It expects EBITDA to rise at a CAGR of 16% over FY25–28E on the back of lower aluminium CoP, aluminium and zinc volume growth and higher commodity prices. 

Consolidated net debt is likely to fall to Rs 61,000 crore by end-FY27 (net debt/EBITDA ex-HZ to fall to 1.4 times from 2.7 times in FY25). "Valuing at Rs 686, based on FY28E SotP. The stock trades at 5.3x/4.8x implied FY27E/28E EV/EBITDA; retain ‘BUY’," said Nuvama. 

Brokerage Emkay Global has a price target of Rs 625 on the metal stock along with a Buy rating.