Subscribe to Nuvoco Vistas Corporation: Motilal Oswal

Motilal Oswal has come out with its report on Nuvoco Vistas Corporation. The research firm has recommended to ''Subscribe'' the ipo in its research report as on August 08, 2021.

Broker Research

August 09, 2021 / 12:41 IST

26 Aug, 2025 12:21

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Motilal Oswal IPO report on Nuvoco Vistas Corporation

Nuvoco Vistas Corporation Ltd (NVCL), part of the Nirma Group, is the 5th largest cement company in India (4.2% of the total capacity) and the largest cement company in East India in terms of capacity. Largest player in fast growing East India with significant presence in North: NVCL is the largest player in East India with 17% of the total regional capacity while it constitutes 5% of total capacity in North India. Through its strategically located plants in North/East, it is able to cater demand in Central India too. North, East and Central India are the fastest growing cement markets in India. Focus on infrastructure investments and revival of housing segment would drive robust industry demand growth of 6.5% CAGR over FY21-26E (2x of supply growth), resulting in utilization level improving to 71% (vs. avg. of 64% over FY15-21). In addition, NVCL has 79% exposure to trade (vs. industry avg. of 63-68%), resulting in better realization.

Valuation and Outlook

As NVCL has a short history of existence, we believe it has potential to improve its financials in the long run and come at par to its peers as operating leverage kicks in. It is expected to witness strong growth going ahead led by its expansion plans, integration of NU Vista and debt reduction. We recommend Subscribe for Long Term.

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