NCLT Clears Vedanta Demerger: Nuvama Sees 36% Upside, Rs 686 Target

• NCLT has approved Vedanta's demerger scheme, clearing a major regulatory hurdle for the company.
• Nuvama Institutional Equities maintains a 'Buy' rating on Vedanta with a target price of Rs 686, indicating a 36% upside.
• The demerger will split Vedanta into five separate listed companies, offering investors direct investment opportunities and unlocking value (estimated Rs 84/share benefit).
• Nuvama dismisses debt default concerns, citing extended maturity for Vedanta Resources and projected debt reduction for Vedanta Limited.
• Strong commodity prices, expected 16% EBITDA CAGR (FY25-FY28), and a Rs 20 DPS by January 2026 are key triggers for growth.

Why It Matters: Vedanta's NCLT-approved demerger, debt reduction, and strong outlook signal significant upside for investors.