Vedanta demerger: Analyst turns bullish, suggests buy on dips

Vedanta Demerger: Anil Agarwal-led Vedanta Limited is on the verge of restructuring its business. The last week's National Company Law Tribunal (NCLT) order has now paved the way for the metals-to-oil conglomerate to go ahead with its long planned demerger.

Under the demerger plan, Vedanta will split its businesses into five (5) separate and focused listed companies. The base metals business will be housed in Vedanta Ltd, while Vedanta Aluminium, Talwandi Sabo Power, Vedanta Steel and Iron and Malco Energy housing oil and gas business will be the other four listed entities.

Anil Agarwal has said that Vedanta's demerger is designed to sharpen focus, unlock value and keep cash returns flowing without interrupting its capital expenditure cycle. He said that the company will continue to pay high dividend to its shareholders even after the demerger.

Notably, Vedanta is one of India's high dividend-yielding large-cap stocks. In FY2025-26 so far, Vedanta has paid dividend on two occasions -- Rs 7 in June (totalling Rs 2,737 crore) and Rs 16 in August (totalling Rs 6,256 crore).

"Dividend is in my blood," Anil Agarwal told PTI. "No matter what happens, there will always be a dividend payout by our companies."

Commenting on Vedanta stock, Astha Jain, Senior Research Analyst, Hem Securities, said that the recent news flow surrounding the demerger of Vedanta has contributed to the rally. "My belief is that Vedanta shares could continue to show a good rally in the coming sessions. I see a huge potential in Vedanta because of its nature of business. The company is engaged in exploring, extracting and processing minerals and oil & gas. The demands for energy and metals will continue to rise and Vedanta is a good portfolio stock."

But in the short term, "we may see some profit booking in Vedanta" after a sharp rally, she said. Any decline because of profit booking should be utilised as an opportunity to buy or add more.

"Vedanta is getting ready to cross Rs 600-mark. In the near term, we can see Vedanta moving towards the levels of Rs 620-630," the analyst added.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)