Broker’s Call: Nuvoco Vistas (Accumulate)

Target: ₹391

CMP: ₹376.35

Nuvoco Vistas Corporation reported EBITDA of about ₹570 crore in Q1FY27, respectively due to better-than-expected realisation. The management expects fuel costs to remain broadly stable in the coming quarters, while packaging costs may drop by about ₹20-25/tonne. Although power costs may increase by about ₹40-50/tonne in the next two-three months due to maintenance shutdown of two kilns, improved rail availability during the monsoon and the implementation of lean discounts on clinker and cement movement may partially offset the cost pressure.           

Nuvoco commissioned its 2-mt grinding unit at Surat in July, ahead of schedule. The 3.5-mt clinker unit at Kutch and the 2.5-mt grinding unit with WHRS remain on track for commissioning in H1FY27. In East India, the Panagarh and Jojobera expansion projects are nearing completion, while Jajpur and Arasmeta are expected to be commissioned by FY28. Upon completion, cement and clinker capacities will increase to about 35 mt 17 mt, respectively, supporting long-term volume growth.     

Also, the phased commissioning of Vadraj Cement (VCL) assets, along with capacity expansion in East India, is likely to enhance growth visibility and support volume expansion. We raise our FY27E EBITDA estimate by about 9 per cent and FY28E/29E estimates by about 3 per cent each, factoring in better pricing. As our stock offers an upside of about 15 per cent, we revise our rating to Accumulate from Buy with a higher TP of ₹391 based on 9x March 2028E EV/EBITDA.

Published on July 15, 2026