Nuvoco Vistas shares soar 10% after strong Q1. Why Nomura, Choice see up to 47% upside?

The company reported a 20% increase in net profit to Rs 160 crore in the first quarter of FY27 and a 9% growth in revenue to Rs 3,129 crore.

The company said 5% year-on-year volume growth reflects resilient execution despite a challenging operating environment. Further, sustained cost discipline and operational efficiencies supported 7% YoY EBITDA growth, marking the company’s strongest first-quarter EBITDA performance to date.

Nuvoco said underlying cement demand improved during the June quarter, although demand remained temporarily subdued in some states due to election-related factors. The company noted that central government capital expenditure rose 13% year-on-year in Q1 FY27, up to May 2026, while ongoing infrastructure and housing projects continued to support demand.

Also read: Nuvoco Vistas starts Limla Cement Plant, strengthens footprint in Western India

What are experts saying?

Choice Institutional Equities has retained its ‘Buy’ rating on Nuvoco Vistas and revised its target price to Rs 500 (47% upside) per share. The brokerage remains positive on the company, citing resilient pricing, disciplined cost management and a strong capacity-led growth pipeline. While it expects Q2 FY27 cost inflation of around Rs 100 per tonne, lower than its earlier estimate of Rs 200 per tonne, it believes ongoing fuel optimisation, higher alternative fuel (AFR) usage and stable cement prices should help cushion margin pressures.

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It also expects the early commissioning of the 2 MTPA Surat grinding unit to support long-term growth by expanding the company’s presence in western India. Choice estimates Nuvoco’s EBITDA will grow at a CAGR of 8.8% over FY26-FY29 and believes the stock offers an attractive valuation with scope for a gradual re-rating.

Nomura has maintained a ‘Buy’ rating on Nuvoco Vistas with a target price of Rs 400 (17% upside). The brokerage said the company’s Q1 FY27 EBITDA of Rs 570 crore exceeded both its estimates and the Bloomberg consensus by 22% and 16%, respectively, driven by stronger-than-expected realisations.
Read more: Cement firms do well amid strain, but face capacity test

Unitary EBITDA stood at Rs 1,072 per tonne, rising over Rs 90 per tonne sequentially and coming in 23% above Nomura’s estimate. Grey cement volumes grew 4% year-on-year to 5.3 million tonnes, broadly in line with expectations, while blended realisations improved 7% quarter-on-quarter and were 4% higher than the brokerage’s forecast, supported by better pricing across key markets.

Nuvoco Vistas Q1 commentary

“The geopolitical uncertainty that has persisted over recent quarters has tested supply chains and cost structures across the industry. Our teams have managed this well, maintaining strong cost discipline while preserving operational performance.”

“Going forward, we remain watchful of evolving geopolitical developments and will continue to pursue prudent procurement, cost optimisation and ongoing improvements in supply chain efficiency,” the company said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)