Emkay Global Financial' research report on Vedanta Aluminium Metal
We remain constructive on the medium-term aluminium (Al) outlook, with the global market likely to remain in deficit through CY28 despite Indonesia's announced capacity additions, given execution bottlenecks and China's effective 45mt production cap. VAML's ongoing backward integration across bauxite, alumina, coal, and power should materially lower cash costs, improve operating leverage, and strengthen FCF generation, positioning it among the world's lowest-cost integrated Al producers. Together, favorable industry fundamentals and company-specific cost improvements provide an attractive risk-reward.
Outlook
We initiate coverage on Vedanta Aluminium (VAML) with BUY and TP of Rs550 (~22% upside), based on 6.0x FY28E EV/EBITDA, as we believe the market is yet to fully appreciate its structural earnings potential.
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Vedanta Aluminium Metal - 0207026 - emkay