Global Materials | Industrials | Commodities

Rahul Jain

Equity Bottom-Up

<ul>
<li>Nuvoco reported improved volumes, margins, and deleveraging in FY25, with continued focus on cost optimization and operational efficiency.</li>
<li>The Vadraj Cement acquisition expands capacity to 31 MTPA, diversifying regional exposure and strengthening presence in Gujarat and Maharashtra - west region.</li>
<li>Valuations are reasonable at ~16x FY27E earnings and ~Rs5,100/ton EV/ton, but upside depends on timely integration and ramp-up of new assets.</li>
</ul>


Nuvoco reported improved volumes, margins, and deleveraging in FY25, with continued focus on cost optimization and operational efficiency.
The Vadraj Cement acquisition expands capacity to 31 MTPA, diversifying regional exposure and strengthening presence in Gujarat and Maharashtra - west region.
Valuations are reasonable at ~16x FY27E earnings and ~Rs5,100/ton EV/ton, but upside depends on timely integration and ramp-up of new assets.


Nuvoco Vistas: Improving Performance and Strategic Expansion

External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

External broker reports(aggregated public sources)

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<ul><li>We maintain a BUY rating on Nuvoco Vistas but keep the target price unchanged at INR 420/share (9x its Mar-27E consolidated EBITDA)</li><li>The company announced the acquisition of Vadraj Cements in Gujarat (6mn MT capacity) for an effective cost of USD 60/MT vs Nuvoco’s current valuations of USD 76/MT and below recent M&amp;As at &gt;80/MT</li><li>With a total capex outgo of INR 30bn during FY26-27E, Nuvoco expects to commence production from the plant in Q3FY27E, thus increasing its consolidated capacity to 31mn MT</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We maintain a BUY rating on Nuvoco Vistas but keep the target price unchanged at INR 420/share (9x its Mar-27E consolidated EBITDA)The company announced the acquisition of Vadraj Cements in Gujarat (6mn MT capacity) for an effective cost of USD 60/MT vs Nuvoco’s current valuations of USD 76/MT and below recent M&amp;As at &gt;80/MTWith a total capex outgo of INR 30bn during FY26-27E, Nuvoco expects to commence production from the plant in Q3FY27E, thus increasing its consolidated capacity to 31mn MTContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Nuvoco Vistas Corporation: Long-term growth story intact. Maintain BUY

<ul><li>We met up with the management of Nuvoco Vistas</li><li>The management noted a healthy cement demand trend</li><li>On the cost front, in addition to its ongoing efforts to further squeeze its fuel costs, it expects more savings from WHRS ramp-up, railways sidings, a rising share of AFR, and the resumption of Nimbhol CPP</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We met up with the management of Nuvoco VistasThe management noted a healthy cement demand trendOn the cost front, in addition to its ongoing efforts to further squeeze its fuel costs, it expects more savings from WHRS ramp-up, railways sidings, a rising share of AFR, and the resumption of Nimbhol CPPContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Nuvoco Vistas Corporation: Focus on Cost and Debt Reduction.

Nuvoco Vistas Corporation -  Focus on Cost and Debt Reduction. Maintain BUY

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>Nearing the end of the review period, we see 5 stocks moving from MidCap to LargeCap, 2 new listings added to LargeCap and 7 stocks moving from LargeCap to MidCap.</li>
<li>We see 7 stocks moving from SmallCap to MidCap, 3 new listings added to MidCap, and 12 stocks moving from MidCap to SmallCap.</li>
<li>Stock migrating upward have, on average, outperformed stocks that are downward migrations. Stocks moving from MidCap to LargeCap have performed the best.</li>
</ul>


Nearing the end of the review period, we see 5 stocks moving from MidCap to LargeCap, 2 new listings added to LargeCap and 7 stocks moving from LargeCap to MidCap.
We see 7 stocks moving from SmallCap to MidCap, 3 new listings added to MidCap, and 12 stocks moving from MidCap to SmallCap.
Stock migrating upward have, on average, outperformed stocks that are downward migrations. Stocks moving from MidCap to LargeCap have performed the best.


India: AMFI Stock Reclassification Preview

India

Nuvoco Vistas Corporation Limited is a leading Indian building materials company that manufactures and sells cement, ready-mix concrete (RMX), and modern building materials (MBM). Its product portfolio includes various types of cement, as well as construction chemicals, wall putty, tile adhesives, and other specialized building solutions. The company was incorporated in 1999 and is headquartered in Mumbai, India.

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Nuvoco Vistas (NUVOCO IN)

Nuvoco Vistas: Improving Performance and Strategic Expansion

Nuvoco sees growth in volumes and margins with Vadraj Cement acquisition, but success hinges on efficient integration of new assets.

Rahul Jain

Nuvoco Vistas Corporation: Long-term growth story intact. Maintain BUY

We maintain a BUY rating on Nuvoco Vistas but keep the target price unchanged at INR 420/share (9x its Mar-27E consolidated EBITDA)

HDFC Securities

Nuvoco Vistas Corporation: Focus on Cost and Debt Reduction.

Nuvoco is targeting to reduce net debt to EBITDA to below 2x before taking up major expansions. Existing capacities can support ~7% volume CAGR...

HDFC Securities

Nuvoco Vistas Corporation - Focus on Cost and Debt Reduction. Maintain BUY

On the cost front, in addition to its ongoing efforts to further squeeze its fuel costs, it expects more savings from WHRS ramp-up, railways...

HDFC Securities

India: AMFI Stock Reclassification Preview

With 9 trading days to go in the review period, we see 5 stocks moving from Mid to Large and 7 stocks moving the other way. 2 new listings will be...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Nuvoco Vistas: Improving Performance and Strategic Expansion

​Nuvoco sees growth in volumes and margins with Vadraj Cement acquisition, but success hinges on efficient integration of new assets.

Rahul Jain

Nuvoco Vistas Corporation: Long-term growth story intact. Maintain BUY

We maintain a BUY rating on Nuvoco Vistas but keep the target price unchanged at INR 420/share (9x its Mar-27E consolidated EBITDA)

HDFC Securities

Nuvoco Vistas Corporation: Focus on Cost and Debt Reduction.

Nuvoco is targeting to reduce net debt to EBITDA to below 2x before taking up major expansions. Existing capacities can support ~7% volume CAGR...

HDFC Securities

Nuvoco Vistas Corporation - Focus on Cost and Debt Reduction. Maintain BUY

On the cost front, in addition to its ongoing efforts to further squeeze its fuel costs, it expects more savings from WHRS ramp-up, railways...

HDFC Securities

India: AMFI Stock Reclassification Preview

With 9 trading days to go in the review period, we see 5 stocks moving from Mid to Large and 7 stocks moving the other way. 2 new listings will be...

Brian Freitas

Nuvoco sees growth in volumes and margins with Vadraj Cement acquisition, but success hinges on efficient integration of new assets.