Vedanta, demerged stocks: What should investors do? Centrum's Nilesh Jain shares his view

Investors holding Vedanta Ltd and its newly demerged entities should stay the course if their investment horizon is longer than a year, according to Centrum Broking's Nilesh Jain. Responding to a viewer query on BTTV, Jain said the group still offers a favourable long-term setup despite the possibility of near-term volatility.

The core message from Jain was clear: patience may be rewarded. "If your view is more than one year, then I think you should stay invested across all demerged entities," he said, signalling confidence in the broader Vedanta basket rather than just the parent counter.

Jain pointed out that Vedanta's underlying stock had already shown "very good momentum". That strength, in his view, supports a positional hold on the group.

"In the short- to medium-term, you may see some consolidation and some selling pressure at the higher level," he also said.

The advice reflects a common post-demerger market pattern: initial enthusiasm in newly listed entities can drive sharp moves, but sustained rerating depends on business-specific execution, liquidity and investor confidence.

The demerger resulted in the listing of four independent companies, including Vedanta Oil and Gas Ltd, Vedanta Iron and Steel Ltd, Vedanta Power Ltd and Vedanta Aluminium Metal Ltd. With this, the Vedanta Group now has five listed companies under the Vedanta brand, including Vedanta.

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

"Each of the five sectors is exciting and holds tremendous potential. We remain committed to being a dividend-paying entity and creating value for all the companies," said Agarwal.

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.