Vedanta Stocks Surge After Exiting T2T Segment: Iron, Oil & Gas See Double-Digit Gains Amid Sector Rallies

Vedanta Stocks Surge After Exiting T2T Segment: Iron, Oil & Gas See Double-Digit Gains Amid Sector Rallies​

The demergered entities of the Vedanta Group are experiencing a significant trading boost after exiting the specialized Trade to Trade (T2T) segment on June 30. Vedanta Aluminium, Vedanta Iron and Steel, Vedanta Oil and Gas, and Vedanta Power have all rallied for two consecutive days, with some scrips gaining up to 10%.

The four companies, which were initially listed on June 15, spent their first ten sessions under T2T restrictions. This segment mandates compulsory delivery for every transaction, preventing intraday buying and selling and enforcing a circuit filter capped at 5% in either direction.

Moving into the normal trading segment removes these limitations, potentially injecting greater liquidity and volatility into the stock prices of all four companies.

Vedanta Aluminium Reaches New Heights as Analysts Signal Strong Growth Potential​

Vedanta Iron & Steel surged by 10%, trading at Rs 42.65 apiece, while Vedanta Oil and Gas shares were up 8.9% at Rs 42.15 at 11:10 am on July 1. Vedanta Power climbed 5%, and Vedanta Aluminium climbed 1.4% to Rs 459.6.

Citi assigned a Buy rating for Vedanta Aluminium with a target price of Rs 560 per share, highlighting it as its top India metals pick. The brokerage noted the company's unique combination of volume growth, cost reduction opportunities, and leverage to a favorable aluminium cycle.

Kotak Institutional Equities also rated the stock a Buy, setting a fair value of Rs 600 per share, suggesting potential upside of up to 30% from current levels. Kotak described Vedanta Aluminium as a "crown jewel set to extend leadership."

Market Experts Detail Growth Prospects for Key Vedanta Segments​

Kotak emphasized that Vedanta Aluminium, which is India's largest aluminium producer and the world's third-largest outside China, is well positioned for growth. With 2.9 million tonnes per annum (mtpa) of installed capacity and an estimated 62% share of the domestic market, it is expected to benefit from increasing demand.

Kotak projects EBITDA and profit CAGRs of approximately 23% and 33%, respectively, citing the company's strong free cash flow profile and cost-reduction opportunities. Citi expects EBITDA and profit CAGRs to be around 15% and 26% over FY26-FY29.

Vedanta Oil & Gas Bolstered by Credit Rating and Transformation Plan​

ICRA assigned a AA+ (Stable) credit rating for the long-term fund-based term loan of Vedanta Oil and Gas, underscoring its strong financial profile and operational resilience. The company's portfolio is anchored by the Rajasthan block (RJ-ON90/1).

ICRA noted that the company’s established production profile, projected at 87,200 barrels of oil equivalent per day (boepd) in FY2026, supports healthy revenue visibility. The stock's management is also focusing on transforming its exploration model.

Operational Focus and Future Targets for Vedanta Power​

Regarding Vedanta Power, the brokerage noted that it ranks among the top five private thermal power producers by installed capacity and aims to be among the top three players by FY33.

The company plans to expand its coal-based capacity from 4.2GW in FY26 to 4.8GW in FY27E, further targeting 12GW by FY33. This represents a CAGR of 16% over FY27-33E, though much of the growth is back ended.

Yes Securities stated that management is committed to materially increasing production while reducing operating costs and improving reserve replacement. Key areas for long-term value creation include ASP deployment in Rajasthan North, Deep Gas development in Rajasthan South, and the Deepwater KG Basin.