Nuvoco Vistas Shares May Rally 40% Says HDFC Securities — Check Stock Rating, Revised Target Price

Nuvoco continues to focus on premiumization, and efficiency improvements should drive margin gains. The brokerage expects cement prices to remain stable following the recovery seen in H1 FY26. Subsequently, it expects Nuvoco to deliver consolidated Ebitda of 18% during FY25-28E..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Retail Research.HDFC Securities has reaffirmed its 'Buy' rating on Nuvoco Vistas Corporation Ltd. with a revised target price of Rs 470 per share, implying an upside of nearly 40% from the current market price of Rs 335.The balance sheet deleveraging has provided significant comfort on valuation front. The brokerage believes, timely commissioning of the Vadraj assets and ramp-up can drive valuation rerating..Nuvoco is expanding its capacity by 38%, leading to a capacity of 34.5 million metric tonne by H1 FY28. The company maintains the capex progress on track. The expansion program includes refurbishment and operationalization of the acquired Vadraj Cement assets in the west and debottlenecking capacity in the east, entailing a total capex of Rs 38 billion. The Rs 12 billion compulsorily convertible debentures issuance by Nuvoco to part-fund these expansions will significantly trim debt on books, cooling off leverage ratio. We expect its net debt to Ebitda to fall to 2/1.1x in Mar’26/Mar’28E, from an elevated level of 3.6x in Sep’25. These expansions should accelerate consolidated volume CAGR to 6% during FY25-28E as against 3% in FY22-25E. Nuvoco continues to focus on premiumization, and efficiency improvements should drive margin gains. The brokerage expects cement prices to remain stable following the recovery seen in H1 FY26. Subsequently, it expects Nuvoco to deliver consolidated Ebitda of 18% during FY25-28E..Click on the attachment to read the full report:.India Cements Shares In Focus: ICICI Securities Re-Initiates Coverage With 'Hold' Rating.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Nuvoco Vistas Shares May Rally 40% Says HDFC Securities — Check Stock Rating, Revised Target Price

The brokerage cites aggressive capacity expansion, balance sheet strengthening through CCDS issuance, and premiumisation as key drivers of growth.

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