Nuvoco Vistas Q4 Results Review - Focus On Retaining Value Through Premiumisation: Nirmal Bang

Nirmal Bang Report

Nuvoco Vistas Corporation Ltd.'s volume and Ebitda/tonne numbers witnessed modest variations from our estimates. Volume (actual/estimate: 5.3/5.2 million tonne) and Ebitda/tonne (Act/estimate: Rs 930/Rs 1,021 million tonne) grew by 1.5% YoY and (8.9%) YoY, respectively.

According to non-binding indicative estimate, cement industry growth in FY25 will be healthy at 8- 8.5% YoY and pricing scenario will be flat. This will have a favorable impact on Nuvoco Vistas Corporation prices and volume while profitability will be stable.

We maintain our Ebitda estimates, target price and 'Buy' rating on Nuvoco. We have assigned eight times March 2026E enterprise value/Ebitda to arrive at a target price of Rs 442, reflecting a 32% upside from the current market price.

Key risks:

Decline in market share, rebound in eastern market growth and stable pricing mechanism in FY25.

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