Shares of Hindalco Industries and Vedanta Ltd surged over 3% on April 7, 2026, after global brokerage JPMorgan Chase & Co. turned bullish on the aluminium sector, upgrading both stocks and sharply raising their target prices.
JPMorgan upgraded Hindalco to “Overweight” from “Neutral,” increasing its target price to ₹1,125 per share from ₹875. Similarly, Vedanta was upgraded to “Overweight,” with the target price raised to ₹850 from ₹680 per share. The brokerage highlighted strong earnings visibility driven by rising aluminium prices and favourable currency movements.
The rally comes amid a sharp uptrend in global aluminium prices on the London Metal Exchange, where prices are hovering near $3,500 per tonne—well above the $2,900 per tonne implied in current valuations of both companies. This gap suggests significant upside potential as earnings catch up with elevated price levels.
JPMorgan noted that ongoing geopolitical tensions in West Asia have pushed the aluminium market to the brink of a supply-driven bullish cycle. Recent smelter outages are expected to persist for months, even after shipping normalises, tightening supply and supporting prices.
For Hindalco, the brokerage expects a meaningful improvement in earnings trajectory, led by its subsidiary Novelis, where earnings are believed to have bottomed out. Additional support is likely to come from a stronger copper business and the expected restart of the Oswego plant by FY27, which should further boost profitability.
Vedanta, on the other hand, is seen benefiting from strong tailwinds in its aluminium and zinc businesses. JPMorgan believes these gains will help offset weakness in oil volumes. The brokerage also pointed out that Vedanta’s valuation remains attractive, with FY27 EBITDA estimated at around 4x, improving the overall risk-reward profile.
While energy inflation remains a near-term concern for the sector, broader commodity tailwinds are expected to ease recent debt-related worries for both companies.
Overall, JPMorgan’s upgrade signals growing confidence in the metals space, with aluminium emerging as a key driver of earnings growth. As supply constraints tighten and prices remain elevated, both Hindalco and Vedanta appear well-positioned to capitalise on the upcycle heading into FY27.