{
  "id": 3454903,
  "title": "Vedanta Aluminium at earnings inflection point? Here's why Motilal Oswal sees 21% upside",
  "url": "https://urgent.news/2026/08/26/vedanta-aluminium-at-earnings-inflection-point-heres-why-motilal",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-26T05:50:28.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/markets/stocks/news/vedanta-aluminium-at-earnings-inflection-point-heres-why-motilal-oswal-sees-21-upside/articleshow/133531348.cms"
  },
  "original_language": "en",
  "account": "Motilal Oswal Financial Services maintains a bullish outlook on Vedanta Aluminium Metal, citing favorable industry trends, company-specific advantages, and a valuation gap compared to peers. The brokerage predicts Vedanta Aluminium will enter a period of strong earnings growth. They reaffirmed their 'Buy' rating on the stock, with a target price of Rs 540 per share, representing approximately a 21% increase from its prior closing price of Rs 448. The stock experienced a 1% gain, closing around Rs 454 on Wednesday morning.\n\nIn their recent report, Motilal Oswal noted that Vedanta Aluminium, which split from its parent company Vedanta earlier this year, is currently experiencing a strong earnings inflection point. The company's earnings are expected to grow at around an 18% compound annual growth rate (CAGR) over FY26 to FY28, backed by three key factors: volume scale, integration-driven cost reductions, and a growing value-added mix. The global aluminium market is tightening due to production limits in China, supply disruptions in Europe and Russia, and a lack of investment outside China. Meanwhile, India's robust demand for aluminium and significant potential for import substitution present a positive outlook for the company, as domestic demand is forecasted to increase at an 8-9% CAGR, reaching 8-8.5 million tonnes (MT) by FY30, driven by infrastructure development, electrification, automotive demand, renewable energy investments, and manufacturing growth. The country's continued reliance on aluminium imports also creates a substantial opportunity for domestic producers to substitute imports. Motilal Oswal believes Vedanta Aluminium's ongoing backward integration, rising contribution from its VAP (Vedanta Aluminium Projects), and strong domestic demand outlook provide solid visibility on earnings growth and cash flow generation in the medium term. The brokerage projects a 11% CAGR in consolidated revenue, an 18% CAGR in EBITDA, and a 23% CAGR in profit after tax (PAT) over FY26 to FY28, fueled by volume growth, margin expansion, and increased downstream contributions.",
  "summary": "Motilal Oswal has reiterated its Buy rating on Vedanta Aluminium Metal with a target price of Rs 540, implying 21% upside. The brokerage expects EBITDA to grow at an 18% CAGR through FY26-28, supported by higher volumes, cost efficiencies, greater value-added production and favourable aluminium market dynamics.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}