Kotak Recommends Vedanta as Top Buy Amid Cooling Aluminium Euphoria

• Kotak Institutional Equities maintains 'Buy' rating on Vedanta, despite moderation in aluminium prices.
• LME aluminium prices softened 7% from recent highs to $3,030/tonne, but remain 20% above FY2025 average.
• Weakness attributed to fewer US Fed rate cut expectations, stronger dollar, and broader commodity sell-off.
• Aluminium fundamentals remain strong due to rising demand, lagging capacity, and supply disruptions, creating a structural deficit.
• Kotak forecasts aluminium prices at $2,900/tonne for FY2027 and FY2028E, with a price target of ₹890 for Vedanta, implying 32% upside.