Vedanta stock surges 5% on BofA upgrade to Buy rating. The international brokerage raised its target price to Rs 840 from Rs 480, representing a 75% increase. BofA cited a constructive outlook for aluminium prices, supportive silver valuations, and an attractive dividend yield exceeding 6% for FY27. The upgrade reflects significant deleveraging at the parent level, reducing refinancing risks. BofA increased FY26E-FY28E EBITDA estimates by 16-21%, supported by higher aluminium assumptions and a lower holding-company discount of 5%. Vedanta's Q3 performance was exceptional, with consolidated profit jumping 61% year-on-year to Rs 5,710 crore and record EBITDA of Rs 15,171 crore. Aluminium production surged 57% while production costs declined 11%, expanding margins to 41%.
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