Vedanta's demerger is finally here, but where will investors find the most value?

Vedanta's long-awaited demerger culminated with four new entities—aluminium (VAML), oil & gas (Cairn), power, and iron & steel—making their stock market debut nearly three years after the announcement. VAML, the largest of the four, carries $3.5 billion in net debt (nearly two-thirds of group debt) and trades at ~6.5x EV/Ebitda on FY27 estimates, suggesting much optimism is priced in. The residual Vedanta entity retains a 60%+ stake in Hindustan Zinc and exposure to silver, copper, nickel, and ferro chrome, and trades at ~4.5x consensus FY27 earnings, still carrying a conglomerate discount.