The brokerage expects Vedanta Aluminium to benefit from a favourable medium-term aluminium market, with global supply likely to remain constrained through CY28 as China's production nears its capacity cap and Indonesia's planned expansion faces execution hurdles. It also sees the company's earnings being driven by structural cost reductions through deeper backward integration in bauxite, alumina, coal and power, improving self-sufficiency, lowering costs and boosting cash flows. The brokerage believes these factors are not fully reflected in the stock's valuation, while citing weak aluminium prices, higher energy costs, project delays and regulatory changes as key risks.

Vedanta Aluminium Metal is India's largest aluminium producer. The company produced 2.42 million tonnes of aluminium in FY25, accounting for more than half of the country's output. It operates a 5 MTPA alumina refinery at Lanjigarh in Odisha and the world's largest aluminium smelter at Jharsuguda with a capacity of 1.85 MTPA. It also operates Bharat Aluminium Company (BALCO) in Chhattisgarh.

Vedanta Aluminium Metal was carved out of Vedanta Ltd. as part of the group's demerger to create four independently listed businesses. The company debuted on the NSE at Rs 522 on 15 June 2026, giving investors direct exposure to Vedanta's aluminium business. The stock has since declined 12.02% from its listing price.

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