Shares of Nuvoco Vistas will be in focus on Wednesday, July 15 as brokerages reviewed first quarter earnings for fiscal 2027, highlighting strong performance and better pricing.
Brokerages such as Jefferies and HSBC stayed bullish on Q1FY27 earnings and maintained 'buy' on Nuvoco Vistas stock, while hiking target prices. Jefferies raised the target price to Rs 430, nearly 26% upside from its Tuesday's closing price. HSBC has hiked has hiked target price to Rs 475, an upside of 39%.
The cement maker posted a net profit of Rs 160 crore in the April to June quarter, a 20% jump from Rs 133 crore in the same period last year. Its revenue from operations rose 8.9% year-on-year to Rs 3,129 crore from Rs 2,873 crore, indicating higher sales and improved realisations across key markets.
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Meanwhile, Ebitda rose 9.6% to Rs 568 crore from Rs 519 crore a year earlier. The Ebitda margin was around 18.2%, compared with 18.1% in the year-ago period.
The company had also reported a one-time loss of Rs 48 crore in the fourth quarter of FY26.
According to Jefferies, better pricing, strong execution led earnings of Nuvoco Vistas. The company navigated cost headwinds through sharp reduction in petcoke mix/better procurement, while execution in a challenging macro exceeded expectations. In terms of outlook, the brokerage believes that the second quarter EBITDA is likely to see seasonal softness and some lagged impact of cost inflation. Commisioning and ramp-up of acquired Vadraj asset is key monitorable, says Jefferies.
HSBC notes that Nuvoco Vistas continued its strong performance with Q1 EBITDA beat driven by higher prices. While Q2 seasonality is weak, the brokerage see better demand, pricing and cost environment for cement sector in the second half of fiscal 2027.
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