Given reasonable valuations and the improvement in end-market demand outlook at Novelis, the new fair value for the stock has been determined at Rs 675, a 26.2% increase from earlier Rs 535.
Vedanta demerger positive only if it finds credible investors to cut debt thehindubusinessline.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thehindubusinessline.com Daily Mail and Mail on Sunday newspapers.
Vedanta Ltd s parent company Vedanta Resources Ltd (VRL) has debt repayments worth $1.3-1.4 billion to make in the next six months, including bond payments of $1 billion in January 2024. In FY25, there are debt obligations worth $3 billion, besides interest-servicing requirements, according to various brokerage estimates.
"We believe the recent developments related to Tata Steel UK will serve as a favourable catalyst for the stock price as it eliminates a key overhang for Tata to provide cash support from India operations to TSUK (Tata Steel UK) in the long term," said Ravi Sodah, analyst at Elara Capital.