Vedanta shares: What Emkay says on revision in demerger plan, stock price target

The Vedanta Iron and Steel segment will include Vedanta's iron ore mines in Karnataka, and Liberia, as well as the ESL steel plant in Jharkhand. Emkay sees Vedanta's iron and Steel business Ebitda growing at 27.1 per cent CAGR over FY24-FY27E, with absolute Ebitda generation Of Rs 3,910 crore in FY26E. It has assigned 8 times FY26 EV/Ebitda multiple for this business, and arrived at equity value of Rs 17,900 crore. Talwandi Sabo Power will be renamed 'Vedanta Power Company. This entity of Vedanta will house all the merchant power plants owned by Vedanta. Emkay values Vedanta Power at IO times on EV/Ebitda, in line with the power sector average, leaving a meaningful upside.