Vedanta shares nearly doubled in one year amid demerger optimism steady financial performance

New Delhi, May 1 (PTI) Share price of mining conglomerate Vedanta Limited has nearly doubled in the last one year as investors bet big on optimism from the demerger and steady financial performance.
     Stock exchange data showed that Vedanta stock advanced 84.5 per cent between April 30, 2025 and April 29 this year, sharply outperforming the BSE benchmark Sensex, which declined over 3 per cent in the same period.
     During the rally, Vedanta shares touched a 52-week high of Rs 794.90, increasing the company's market capitalisation by Rs 1.38 lakh crore on the BSE.
     The company's board had earlier approved a demerger effective May 1, paving the way for five independent, sector-specific businesses. The restructuring aims to enable each entity to pursue its own growth strategy and attract a broader investor base.
     Shareholders having one share of Vedanta as of April 29 will receive four additional shares of the resulting companies.
     The company's stock traded ex-demerger on April 30.
     We view this (demerger) as a meaningful value-unlocking trigger for shareholders, according to Emkay Global Financial Services Ltd.
     "The restructuring is expected to drive upside through 1) potential valuation re-rating, as pure-play entities typically command a premium over diversified miners, and 2) improved capital allocation backed by focused management teams for each business," it added.
     Vedanta had earlier said that the demerger will help in simplifying its corporate structure with sector-focussed independent businesses and provide opportunities to global investors, including sovereign wealth funds, retail investors and strategic investors, with direct investment opportunities in dedicated pure-play companies linked to India's remarkable growth story through Vedanta's world class assets.
     It will also provide a platform for individual units to pursue strategic agendas more freely and better align with customers, investment cycles and end markets.
     As part of the demerger, Vedanta plans to separately list four entities: Vedanta Aluminium Metal Limited (VAML), Talwandi Sabo Power Ltd (TSPL), Malco Energy Ltd (MEL), and Vedanta Iron and Steel Limited (VISL).
     Vedanta will file with stock exchanges next week for listing approval of its demerged entities, with shares expected to list and commence trading by mid-June, a top official of the company said on Wednesday.
     Vedanta Ltd on Wednesday reported an 89 per cent rise in its consolidated profit after tax at Rs 9,352 crore in the quarter ended March 2026, citing higher sales volume amid rising global metal prices as well as the weakening rupee's exchange rate.
     In the year-ago period, the Anil Agarwal-led company posted a consolidated profit after tax of Rs 4,961 crore.
     The revenue from operations during the latest fourth quarter also rose by 29 per cent to Rs 51,524 crore from Rs 39,789 crore a year ago.
     "Vedanta's 4QFY26 performance came largely as expected, supported by better volumes and favourable LME prices," according to a report by Motilal Oswal Financial Services Ltd.
     Vedanta Ltd is the world's leading producer of metals, oil & gas, critical minerals, power and technology.

(This story has not been edited by THE WEEK and is auto-generated from PTI)