Shares of Vedanta Aluminium Metal slipped for the second straight session on Tuesday amid profitbooking in the metal and mining sector. Vedanta Aluminium Metal stock fell 5% to Rs 475.65 on Tuesday against the previous close of Rs 500.65. Market cap of the firm slipped to Rs 1.85 lakh crore. Total of 0.16 lakh shares of the firm changed hands amounting to a turnover of Rs 76.09 lakh on BSE. 

On the listing day (June 15), the stock closed 5% lower against the open of Rs 527. But the two-day fall may not be a true picture of the recently listed Vedanta Group entity. 

Vedanta Aluminium is India's largest aluminium producer, and the third-largest globally outside China. 
In FY25, the company produced more than half of India’s aluminium at 2.42 million tonnes, according to the company website. 

Analysts say Vedanta Aluminium Metal is a likely near-term performer. It has scale, and low production costs. The commodities cycle favours the business. 

The company runs the world's largest aluminium smelter at Jharsuguda, Odisha. The company aims to double its production capacity to 6 million tonnes per annum (mtpa) over the next three years, a move that would position it as the world's largest fully integrated aluminium producer while also making it one of the industry's lowest-cost manufacturers.

Emkay Global Financial Services said it sees a strong re-rating case for Vedanta Aluminium. The stock has an average fair value of Rs 463.21, according to data compiled from seven brokerages. 

Commenting on the aluminium business, Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said investors could explore Vedanta Aluminium Metal as a potential opportunity. He highlighted the company's ongoing capacity expansion plans along with favourable trends in London Metal Exchange (LME) aluminium prices as the primary drivers supporting the investment case.

Recently, rating agency ICRA gave ICRA AA+ rating to demerged entity Vedanta Aluminium Metal Limited with outlook stable.