Shares of Vedanta Ltd. and Hindustan Zinc Ltd. continued to rise on Tuesday as selling pressure in precious metals eased and lifted the Nifty Metal index by about 2.87%. Shares of Vedanta Limited surged nearly 2.3% while Hindustan Zinc rose 2.7% following a sharp pullback in bullion prices that had weighed heavily on metal stocks last week. 

Commodities experienced an aggressive global selloff towards the end of January, with the risk-off mood compounded by a broader equity rout in Asia, where technology stocks dragged markets amid concerns over stretched valuations and heavy spending on artificial intelligence.

The rebound follows Vedanta Limited’s strong Q3FY26 earnings. 

Brokerages have reiterated their positive outlook on Vedanta Ltd. following its third-quarter earnings. Based on updated estimates from key houses including Citi, Nuvama, Kotak, Emkay, Investec, and ICICI Securities, the current target share price range for Vedanta stands at ₹850-930, reflecting improved earnings, favourable commodity prices, and greater confidence in the company’s balance-sheet trajectory. 

As per Nuvama, Vedanta’s demerger will conclude in Q1FY27 with an effective date of April 1, 2026. The brokerage noted that the company is in process of commissioning aluminium (435ktpa) plant, which is likely to be fully commissioned by H1FY27. Nuvama has revised its target price on Vedanta to ₹899. 

“We are raising FY27E/28E EBITDA by 4% to factor in higher aluminium prices (FY27/28 LME aluminium of USD3,100/2,850 versus USD3,000/2,750 earlier). We are factoring in EBITDA compounded annual growth rate (CAGR) of 21% over FY25–28E. On marked to market (MTM) basis (LME aluminium @USD3,200, zinc @USD3,400, silver @USD110 and USD/INR of 92), FY28E EBITDA is likely to be ~INR1,049bn with fair value of INR1,274,” Nuvama said. 

As per Motilal Oswal, Vedanta’s earnings were in line with expectations, supported by favorable prices and better volume. The brokerage has a strong near-term outlook on the company. Motilal Oswal has set a target price of ₹810. “Vedanta’s 3QFY26 operational performance came largely as expected, supported by better volumes and favorable LME prices. We increase our FY26 revenue, EBITDA, and PAT estimates by 4%, 3%, and 22%, factoring in the strong earnings in 3QFY26,” the brokerage said. 

“Capex plans are progressing well and will likely lead to further cost savings. Management targets to maintain strong growth in earnings, led by the upcoming capacity, which will produce higher VAP products. Vedanta remains firm on its deleveraging plans, and going forward, higher cash flows will support both its expansion plans and deleveraging efforts,” it added. 

Kotak Institutional Equities has set a target price of ₹890, while Citi has pegged its target at ₹900, reflecting confidence in Vedanta’s earnings visibility and balance-sheet trajectory. Emkay Global Financial Services and ICICI Securities have also raised their target prices to ₹850 each post the Q3 results. 

Research firm JPMorgan also has a positive view of the company, noting that Vedanta’s capacity expansion projects are largely on track, with the Balco smelter (435kt)/Lanjigarh alumina refinery train-2 ramping up. Similarly, Vedanta’s Sijimali bauxite mine & Ghogarpalli coal mine is also expected to get commissioned in 1HFY27/2HFY27 respectively. 

Research firm Investec has taken note of the successful execution of Vedanta Resources’ debt refinancing, which would result in implied lower required yields into FY27/28. The research firm has set the highest target price of ₹930 on the stock and forecasted a dividend yield of ~4–5% for FY27–28E. 

For the third quarter, Vedanta’s profit after tax jumped 60% YoY to ₹7,807 crore. The company recorded its highest-ever quarterly revenue of ₹45,899 crore, up 19% YoY, while its net debt to EBITDA ratio improved to 1.23x from 1.40x