Brokerage firm Nuvama Institutional Equities has reiterated its 'Buy' rating on Vedanta with a price target of ₹686 per share. According to Nuvama, the company's strategy around demerger, delivery and deleveraging is on course to pay off, aided by favourable commodity prices.

Vedanta is in the process of splitting its businesses into five separately listed companies, which Nuvama says will give investors the option to pick individual commodity plays and help unlock value for units such as aluminium, steel and power.

The brokerage believes Vedanta's fair value of ₹686 could rise by another ₹84 once the demerger comes into effect.

The NCLT hearing on the second motion was completed on November 12, and Nuvama expects a final order in December, followed by the demerger's completion in the f

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