Brokerages CLSA and Morgan Stanley initiated coverage on Vedanta Aluminium and Adani Enterprises, respectively. Their price targets imply gains of 16% for Vedanta and 18.5% for Adani.

VEDANTA ALUMINIUM

BROKERAGE: CLSA Price Target: Rs 540 CMP: Rs 464.45 | Upside: 16%

• Aluminium upcycle underpinned by resilient demand from electrification and substitution-led end markets, and constrained supply growth
• Discount in valuation versus peers unwarranted because of its improving cost profile and strong free cash flow yield.

ADANI ENTERPRISES
BROKERAGE: MORGAN STANLEY Price Target: Rs 3,638 CMP: Rs 3069 | Upside: 18.5%

• Company now entering a large earnings monetisation phase, with multiple businesses reaching scale simultaneously
• Earnings drivers for FY27 are Navi Mumbai International Airport, Ganga Expressway, the copper plant, and new energy capex.