Lowest-cost aluminium in a deficit
NA
Vedanta Aluminium Metal Limited engages in the production of metallurgical grade alumina and aluminium products. The company provides aluminium ingots, foundry alloys, billets, slabs, wire rods, flip coils, and rolled and other products products under the VEDANTAL brand name. It also operates an independent power plant with a capacity of 3015 megawatts. The company products are used in aerospace, aviation, defence, transportation, electricity distribution, packaging, and other sectors. Vedanta Aluminium Metal Limited was incorporated in 2023 and is based in New Delhi, India.
Vedanta Alumin Metal major competitors are National Aluminium, Arfin India, MMP Industries, Baheti Recycling Ind, Maan Aluminium, Hardwyn India, ANB Metal Cast. Market Cap of Vedanta Alumin Metal is ₹1,64,940 Crs. While the median market cap of its peers are ₹799 Crs.
Vedanta Alumin Metal seems to be financially stable compared to its competitors.The probability of it going bankrupt or facing a financial crunch seem to be lower than its immediate competitors.
Yahoo profile 23 Sept 2026 · Tijori 23 Sept 2026
Latest reported mix as compiled by Tijori from company disclosures; percentages of revenue.
As the company reports them. They can differ from the ratio table on the Financials tab, which uses Tijori's own definitions (for example NIM on average total assets rather than on interest-earning assets); the Cross-check panel there lines both up.
Vedanta Aluminium Metal is India's largest primary aluminium producer (~50-60% of domestic output; 3rd largest globally ex-China) demerged from Vedanta Ltd effective 1-May-2026 and listed 15-Jun-2026. It runs the Jharsuguda smelter (464 kt in Q1FY27) and BALCO (168 kt), the Lanjigarh alumina refinery (being expanded from 3.5 to 5 mtpa) and ~4.5 GW of captive power; FY27 guidance is 2.6-2.7 mn t aluminium and 4.0-4.1 mn t alumina, with capacity reaching ~3.0 mtpa by FY28 after the 435 ktpa BALCO expansion. Value-added products were 62% of Q1FY27 output (target ~90%); hot-metal cost of production was $1,698/t in Q1FY27 (first quartile of the global cost curve).
No own history (listed Jun-2026); trades at 10.8x TTM vs Hindalco 11.0x and NALCO 9.9x; Nuvama values it at 6.5x FY28E EV/EBITDA. EV/EBITDA n.m.; dividend yield 1.8%.
| Hindalco | Hindalco (11.0x, ROE 13%, Rs 99,165 cr borrowings) is diluted by Novelis' US rolling business and a Rs 1 lakh cr capex pipeline; VAML is a pure upstream play with 50% EBITDA margins, faster deleveraging and higher dividend payout. |
| NALCO | NALCO (9.9x, ROE 29%, debt-free, 3.1% yield) is cheaper and cleaner, but has no smelter growth (capacity flat) and is a PSU; VAML offers 9% volume CAGR to FY28, cost reduction to <$1,600/t and a larger scale (2.7 vs ~0.46 mn t). |
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Materials — 2.2%: aluminium, the one metal with a structural deficit
We own one metal, through one company, because it is the one commodity with a structural supply story: China caps primary aluminium at 45 mn tonnes and is cutting smelters, so LME aluminium crossed $3,000/t in January 2026 for the first time since 2022, averaged $3,571/t in the June quarter and is forecast at $3,600–3,850/t for the second half. India consumes only ~4 kg per capita versus 12 kg globally, demand is projected to grow from 6.1 mt to 8.5 mt by FY30, and imports have doubled to 3.5 mt — which is why the Aluminium Association is asking for higher duties. Vedanta Aluminium's hot-metal cost of $1,698/t puts it in the first quartile of the global cost curve, and at ~11x trailing earnings with a 24–29% EBITDA CAGR expected over FY26–28 it is cheaper than Hindalco without Novelis. The caveat we discuss openly: Indonesian capacity (0.9 → 3.6 mt by 2027) turns the 2026 deficit into a surplus in 2027, so this is a Core holding sized like a cyclical.
Hindalco is 60% Novelis (US rolling, tariff and auto-cycle exposure) and trades at a similar multiple; NALCO is the cheapest but is a PSU with an alumina-price, not metal, earnings driver and a capacity-addition record that is slow. We own no steel: the China export overhang and the domestic capacity race make it the wrong metal for a deficit thesis.