The brokerage firm Nomura has maintained a ‘Reduce’ rating on Nuvoco Vistas Corporation. It has set a target price of Rs 330 per share. Although the Q1FY26 performance of the company posted a few green shoots, the brokerage firm remains cautious due to certain operational concerns.
Let’s take a look at what the brokerage say on this stocks-
Nomura on Nuvoco Vistas: Strong realisation growth drives Q1 beat
According to the brokerage report, Nuvoco reported EBITDA of Rs 520 crore for Q1FY26, which was 4% to 5% above Nomura’s and Bloomberg consensus estimates.
The outperformance was mainly driven by better-than-expected price realisations. “Nuvoco’s blended realization grew 6% quarter-on-quarter,” Nomura noted. As a result, the company clocked a unitary EBITDA of Rs 1,017 per tonne, a 5% sequential increase.
Furthermore, the brokerage in its report noted that grey cement volumes also rose 6% year-on-year to 5.1 MT, in line with projections. Also, the company’s higher exposure to the eastern market supported better realizations, which were 2% higher than Nomura’s estimate.
Nomura on Nuvoco Vistas: Fuel costs in check, but fixed costs remain a concern
Although reporting an uptick in imported pet coke prices, the company managed to control its power and fuel costs. “Q1 P&F cost/t declined 1% quarter-on-quarter and came in 4% below our estimate,” the brokerage highlighted, crediting the drop to optimal fuel mix and strategic sourcing.
“Fixed cost/t (employee + other expenses) decreased just 3% y-y despite strong volume growth…came in 7% above our estimate,” the report said.
Nomura on Nuvoco Vistas: Update on acquisition and debt position
The company also completed its Rs 1,800 crore acquisition of Vadraj Cement in June 2025. As of Q1, Nuvoco’s core net debt (excluding Vadraj) declined by Rs 170 crore sequentially to Rs 3,470 crore.
Nuvoco Vistas stock performance
The share price of Nuvoco Vistas has shown a steady climb. In intraday trade, the stock is up around 2%. Over the last five days, it has gained nearly 8%, and over one month, it’s up 12%. On a YTD and 6 month basis, the stock has surged 10%. Furthermore, the company so far in 2025 delivered a 11% return. The stock’s 52-week high stands at Rs 417, while the low is Rs 287.05.