Vedanta shares in a bull run, overbought on charts; more upside ahead?

Shares of Vedanta hit a record high in early deals on Wednesday amid a correction in the broader market. The metal stock has surged 19% in a month, logging a series of record highs. The stock crossed Rs 550 mark for the first time on December 15, 2025 and has been recording fresh highs since then. The bull run in Vedanta stock has pushed it into an overbought zone with its RSI rising to 78.6 in the current session. 

The metal major stock rose nearly 1% to a fresh high of Rs 629.90 today against the previous close of Rs 621.60. Market cap of the firm rose to Rs 2.43 lakh crore. A total of 0.74 lakh shares of the firm changed hands amounting to a turnover of Rs 4.66 crore. Later, the stock closed 0.040% higher at Rs 622. 

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. 

The stock has risen 136% in two years and gained 538% in five years. 
Meanwhile, Kotak Securities has a buy call on the metal stock. It has a price target of Rs 650 share from the earlier Rs 550 per share. 

Vedanta was upgraded by Kotak Institutional Equities for the second time in two months in December 2025. 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. 

Another brokerage firm Investec has a 'Buy' rating on Vedanta and has raised its price target to Rs 635. The brokerage said the NCLT approval clears the path for Vedanta to split into five listed companies, subject to receipt of other regulatory approvals. With distinct capital structures and a sharper focus on deleveraging, Investec believes the management has flexibility to explore opportunities to unlock value from select assets.

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

Nuvama 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.