Vedanta Aluminium, other demerged stocks surge up to 5%. Which has been the best performed since market debut?

Shares of Vedanta Aluminium Metal, Vedanta Iron and Steel, Vedanta Power and Vedanta Oil and Gas surged up to 5% on Friday, as the newly-listed companies bucked the overall market downturn and recorded sharp gains.The four companies made their much-awaited market debut on Monday, concluding the final leg of Vedanta’s mega demerger, which was one of India’s biggest corporate restructurings in the metals and mining sector.Vedanta Iron and Steel share priceVedanta Iron and Steel shares jumped 5% to hit the upper circuit at Rs 25.57 apiece on NSE, with its market capitalisation now nearing Rs 10,000 crore.

The shares of the company have surged 28% in just five sessions since listing at Rs 20 apiece.

Notably, the stock has hit the 5% upper circuit for the fifth consecutive session today.

PI Opportunities AIF V LLP, an investment arm of Premji Invest, which is owned by Indian billionaire businessman and Wipro Chairman Azim Premji, bought nearly 4.84 crore shares worth Rs 101.68 crore at Rs 21.02 apiece through a bulk deal on Monday, boosting investor sentiment for the smallcap stock.Also read: Why stock market is falling today?Vedanta Aluminium Metal share priceVedanta Aluminium Metal shares jumped nearly 3% to trade at Rs 461.04 apiece on NSE.

After listing at Rs 522 apiece on Monday, the stock has briefly hit 5% lower circuit in the first four sessions, before paring some losses in the previous two days.

Overall the stock has fallen around 12% so far since listing.The company currently has a market capitalisation of more than Rs 1.7 lakh crore, higher than its parent Vedanta whose market cap currently stands at nearly Rs 1.18 lakh crore.Also read: Vedanta demerger unlocks 20% value; Aluminium arm becomes most valuableVedanta Oil and Gas share priceVedanta Oil and Gas also jumped 5% to hit the upper circuit at Rs 32.88 apiece today in the morning, pushing the company’s market capitalisation to Rs 12,842 crore.

The shares of the company, like those of Vedanta Aluminium, briefly hit 5% lower circuit in each of the four sessions following market debut at Rs 38 apiece on Monday.

The shares of the oil and gas business of the conglomerate have now fallen around 13.5% since listing.Vedanta Power share priceVedanta Power shares jumped more than 4% to trade at Rs 42.2 apiece on NSE today.

The stock is less than 1% up from its listing price of Rs 41.8 apiece.

The company currently has a market capitalisation of more than Rs 16,400 crore.Also read: RIL AGM strategy!

How to trade Reliance shares amid hopes of big-bang announcements from Mukesh AmbaniWhich Vedanta stock should you buy now?Amid the post-listing volatility across the new four Vedanta entities, Harshal Dasani, Business Head at INVasset PMS, explained that this is typical of demerger scenarios where price discovery happens in compressed windows and pre-listing positioning unwinds rapidly.He suggested a framework for investors to evaluate these names based on business quality rather than price action.

“Four variables matter: where the underlying commodity sits in its cycle, the balance-sheet position of each entity post-demerger, capex visibility and execution credibility, and the regulatory or pricing environment specific to that sub-sector.

A directional view at the sector level is the appropriate framing,” the analyst said.Dasani then applied this framework to each segment.

He noted that the steel cycle has a constructive structural setup with the capex revival, China stabilisation, and domestic capacity discipline supporting margins, which explains the relative outperformance on debut.

“Aluminium sits in a balanced setup, where the structural story is intact but a meaningful share of the bull case has been priced in pre-listing; the correction is largely a valuation reset rather than a structural concern,” he addedPower is the most defensive of the four, with regulated returns offering stability but limited upside, and the modest price action fits that profile, according to the analyst.

“Oil and gas faces the most challenging setup, with mature fields, a declining production trajectory in domestic blocks, an unsupportive crude price backdrop, and limited reinvestment optionality, which the price action through three lower circuits reflects.

The honest read is that the quality and visibility tilt favours the early-cycle commodity exposure and the regulated utility profile over the late-cycle and declining-asset profile,” he concluded.Also read: Vedanta Aluminium vs Power vs Oil & Gas vs Iron & Steel.

Which stock should you buy?(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own.

These do not represent the views of The Economic Times) ...