Nuvoco Vistas Corp shares tumbled into the red, sinking 5 percent as the cement player reported a net loss for the quarter ended September.
The cement player reported a loss of Rs 52.58 crore in the September quarter, as weak demand and lower prices took a toll. Nuvoco Vistas revenue fell to Rs 2,269 crore, as against Rs 2,573 crore in the same period last year.
The cement player is ranked fifth in India and sold 4.2 million tonnes of cement during the quarter gone by, down from 4.5 million during the year-ago period.
At 11.40 am, Nuvoco Vistas Corporation shares were quoting Rs 330.5 on the NSE, lower by 3.4 percent.
Follow our live blog to catch all the updates
"Nuvoco Vistas’ EBITDA came lower than our estimates, led by a combination of lower volumes and higher costs. Core markets in the northern/eastern regions witnessed price cuts, led by subdued demand due to extended monsoons and delayed capex spends," said Kotak Institutional Equities.
"The company’s ‘value over volume’ strategy continues to lead to underperformance versus peers and market share loss, in our view. Revival in prices after the festive season, down-trending fuel costs and seasonal tailwinds should aid in margin recovery in 2HFY25E," the brokerage added.
Kotak maintained its 'add' rating, with a price target of Rs 355 per share.
"We believe as the industry enters a busy season, a likely recovery in demand and cement prices bode well for Nuvoco's improved performance hereon," said Elara Capital.
The brokerage decided to reiterate its accumulate call. However, it cut its target price on the player to Rs 383 from Rs 399 earlier.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
