Mumbai, July 2 -- The target price of Rs 550 implies an upside potential of about 19.8% from the current market price of Rs 459.25.

The brokerage expects Vedanta Aluminium to benefit from a favourable medium-term aluminium market, with global supply likely to remain constrained through CY28 as China's production nears its capacity cap and Indonesia's planned expansion faces execution hurdles. It also sees the company's earnings being driven by structural cost reductions through deeper backward integration in bauxite, alumina, coal and power, improving self-sufficiency, lowering costs and boosting cash flows. The brokerage believes these factors are not fully reflected in the stock's valuation, while citing weak aluminium prices, higher e...