Vedanta shares are in focus after the company emerged as the highest bidder for Jaiprakash Associates’ assets, with multiple brokerages maintaining a positive stance on the stock. At the current market price of ₹445.80, their targets imply an upside of up to 35 percent.
Nuvama reiterated its buy call with a target price of ₹601 per share, highlighting that Vedanta has bid around ₹17,000 crore for Jaiprakash’s assets. The deal, however, is not final, with the committee of creditors expected to decide within two months and NCLT approval likely to take a further 8–10 months. Once approvals are secured, Vedanta would be required to make an upfront payment of ₹4,000 crore. Nuvama said the acquisition would allow the company to sharpen its focus on the core power business, though it also flagged concerns around diversification into unrelated sectors even as deleveraging remains a key priority.
Citi has also maintained a buy rating on Vedanta with a target price of ₹500 per share. The brokerage said the company has emerged as the top bidder with a ₹16,100 crore offer on staggered payments, covering assets across real estate, cement, power, fertilizer, hospitality, and engineering & construction. However, Citi cautioned that uncertainties remain around the committee of creditors’ choice, timelines for closure, asset monetisation, funding requirements and land legal status. It noted that this uncertainty could create an overhang on the stock in the near term.
Despite these risks, brokerages believe the deal, if successfully executed, could enhance Vedanta’s asset base and growth potential, while the stock continues to offer significant upside from current levels.
Disclaimer: The views and investment recommendations expressed above are those of Nuvama and Citi. They do not represent the views of this publication. This article is for informational purposes only and is not investment advice.
