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Vedanta Share Price Soars 6% to All-Time High in Jan 2026

VEDL

Vedanta Ltd

VEDL

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Vedanta Hits New Peak Amidst Metal Sector Rally

Shares of Vedanta Ltd surged on January 14, 2026, climbing over 6% to establish a new 52-week and all-time high. The stock's strong performance was part of a broader rally in the metal sector, fueled by rising global commodity prices and sustained investor confidence. The share price touched an intraday high of Rs 679.45, reflecting significant buying interest throughout the trading session.

Detailed Stock Performance

On the day, Vedanta's stock opened at Rs 647.00, a significant gap up from its previous close of Rs 637.20. It ultimately closed the session at Rs 675.75, marking a gain of 6.05%. Trading volumes were exceptionally high, with 39,377,338 shares changing hands, valued at Rs 264,970.11 lakhs. This surge in activity underscores the strong momentum behind the stock, which has delivered impressive returns across various timeframes, including a 56.93% gain over the past year and a 111.7% rise over three years.

Broader Industry Tailwinds

The rally in Vedanta's stock is not an isolated event. It coincides with a multi-day rise across the metal sector, as global commodity prices have shown considerable strength. This positive sentiment has lifted several stocks in the industry. The sustained demand for base metals, coupled with a favorable macroeconomic outlook, has created a supportive environment for producers like Vedanta. This sector-wide upswing provided the necessary catalyst for the stock to break past previous resistance levels and chart new territory.

Key Financial Metrics at a Glance

Despite the strong price performance, a look at Vedanta's valuation metrics presents a mixed picture. The company's market capitalization stands at a formidable Rs 2,63,130 crore, positioning it as a leader in the diversified metals sector. However, its valuation appears stretched compared to industry peers.

MetricValueInsight
Market Cap (Rs. Cr.)2,63,130Market leader in the sector
TTM PE Ratio21.90Considered high compared to the sector PE of 14.60
P/B Ratio6.56Indicates a high valuation relative to book value
Dividend Yield (%)6.46Offers an attractive yield for income-focused investors
TTM EPS (Rs.)30.72Grew by 5.92% year-over-year

While the high PE and P/B ratios might suggest caution, the robust dividend yield continues to be a significant draw for investors. Furthermore, the company has demonstrated strong operational performance, with a Return on Equity (ROE) of 36.36% for the year ending March 31, 2025, outperforming its five-year average of 25.19%.

Analyst Sentiment Remains Bullish

Market analysts have maintained a positive outlook on Vedanta, with several brokerage firms reiterating their confidence. Nuvama, for instance, recently raised its target price for the stock to Rs 806, citing potential value unlocking from the company's planned demerger and an improved EBITDA outlook. The consensus among analysts is favorable, with 9 out of 13 tracked analysts recommending a 'Buy' or 'Strong Buy' rating. This strong institutional backing has likely contributed to the recent rally.

Strategic Demerger Plan Fuels Optimism

A key long-term driver for Vedanta has been its strategic plan to demerge into five separate listed entities. The company has received the necessary approval from the National Company Law Tribunal (NCLT) for this restructuring. The demerger aims to create focused, pure-play companies in aluminium, oil & gas, power, and iron & steel, with the residual Vedanta Limited holding the valuable Hindustan Zinc business. Investors anticipate that this move will unlock significant value by allowing each business to attract capital and pursue growth strategies independently.

Technical Strength and Shareholder Confidence

Technical indicators also point to a bullish trend. The stock is trading well above its key moving averages, and indicators like the MACD have recently flashed buy signals. Promoter holding has remained stable at 56.38% as of the September 2025 quarter, indicating continued confidence from the company's founders. Community sentiment is overwhelmingly positive, with 75% of participants in forums expressing a 'Buy' call on the stock.

Concluding Thoughts

Vedanta's ascent to a new all-time high is supported by a confluence of factors, including a strong commodity cycle, positive analyst sentiment, and strategic corporate actions like the demerger. While valuations appear high, the company's operational efficiency and attractive dividend yield provide a solid foundation. Investors will be closely watching the execution of its demerger plan and the trajectory of global metal prices to gauge the sustainability of this upward momentum.

Frequently Asked Questions

Vedanta's stock reached a record high due to a combination of factors, including a strong rally in global metal prices, positive analyst upgrades, and growing investor optimism about its upcoming demerger.
As of January 14, 2026, Vedanta's 52-week high was Rs 679.45, and its 52-week low was Rs 363.00.
The analyst consensus on Vedanta is largely positive. Out of 13 analysts covering the stock, nine have issued a 'Strong Buy' or 'Buy' rating, with none recommending a 'Sell'.
Vedanta plans to demerge its business into five separate listed companies focusing on Aluminium, Oil & Gas, Power, Iron & Steel, and the residual entity which will hold Hindustan Zinc. This is intended to unlock value for shareholders.
As of mid-January 2026, Vedanta's market capitalization was approximately Rs 2,64,420 crore, its trailing twelve-month (TTM) PE ratio was 21.90, and it offered a dividend yield of around 6.46%.

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