1. At a Glance
Nuvoco Vistas is a cement behemoth with 31 MMTPA capacity incoming. Backed by Nirma Group and armed with acquisitions like Vadraj Cement, it’s got size—but is it lean, mean, and profitable? Spoiler alert: not quite. Yet.
2. Introduction with Hook
Imagine running on a treadmill… uphill… in flip-flops… while carrying 25 MMTPA of cement bags. That’s Nuvoco Vistas trying to turn scale into profit.
- ROE? A spicy 0.24%.
- Interest payments? Higher than the net profit.
Despite being the fifth-largest cement player in India, the margins scream, “I need therapy.”
Yet, something’s brewing beneath the surface—and it smells like consolidation.
3. Business Model (WTF Do They Even Do?)
Let’s break it down:
- Cement: Core product with 25 MMTPA current capacity, set to hit 31 MMTPA with Vadraj acquisition.
- Ready-Mix Concrete (RMX): Urban-focused, margin-dilutive but volume-boosting.
- Modern Building Materials: Adhesives, wall putty, dry plaster.
- Geographic Mix: Presence in East, North, and West India with over 60 RMX plants.
Revenue mix is heavily skewed towards cement, but their dreams are diversified. Only problem? Reality isn’t.
4. Financials Overview
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (Cr) | 10,586 | 10,733 | 10,357 |
| EBITDA (Cr) | 1,211 | 1,624 | 1,373 |
| Net Profit (Cr) | 16 | 147 | 22 |
| EPS (₹) | 0.44 | 4.13 | 0.61 |
| OPM % | 11% | 15% | 13% |
Key Notes:
- EPS has a personality disorder: it changes drastically year to year.
- Operating margins are improving, but interest and depreciation still eat profits for breakfast.
5. Valuation
- Current Price: ₹382
- P/E: 89.6 (yes, Nuvoco thinks it’s a tech startup)
- Book Value: ₹252
- P/B: 1.5x
Fair Value Range Estimate
Given the improving EBITDA, upcoming capacity boost, but very poor ROE/ROCE:
→ Fair Value Range: ₹310–₹410
This is assuming EBITDA margin sustains at ~16% and the Vadraj acquisition synergizes without hiccups.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 EBITDA: Record ₹533 Cr with 6% volume growth.
- Vadraj Cement Acquisition: Expands capacity by 6 MMTPA, making Nuvoco a legit 31 MMTPA cement tiger.
- Market Whisper: Potential merger with Nirma Cement operations for scale.
Watchouts:
- Margin consistency is fragile.
- Integration risk from Vadraj.
- Rising cost of capital could sting.
7. Balance Sheet
| Metric | FY25 |
|---|---|
| Equity Capital | ₹357 Cr |
| Reserves | ₹8,645 Cr |
| Borrowings | ₹4,074 Cr |
| Other Liabilities | ₹5,082 Cr |
| Fixed Assets | ₹14,702 Cr |
| Investments | ₹1 Cr |
| Total Assets | ₹18,158 Cr |
Key Points:
- Leverage slowly declining, but still elevated.
- Reserves stable—no major dilution threats.
- CWIP thinning, post-Vadraj integration is capital light.
8. Cash Flow – Sab Number Game Hai
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| CFO | ₹1,711 Cr | ₹1,593 Cr | ₹1,329 Cr |
| CFI | ₹-260 Cr | ₹-573 Cr | ₹-337 Cr |
| CFF | ₹-1,362 Cr | ₹-1,114 Cr | ₹-913 Cr |
| Net Cash Flow | ₹89 Cr | ₹-95 Cr | ₹79 Cr |
Insight:
CFO strong and predictable. FCF positive. But capex, interest, and repayments continue to crimp net movement.
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 3.93% |
| ROE | 0.24% |
| Interest Coverage | Barely 1.5x |
| Debtor Days | 23 |
| Inventory Days | 135 |
| CCC | -123 days (great) |
Verdict:
Only the cash conversion cycle is sexy. Rest of the ratios look like they need calcium (and therapy).
10. P&L Breakdown – Show Me the Money
| Year | Sales (Cr) | EBITDA (Cr) | PAT (Cr) | EPS (₹) |
|---|---|---|---|---|
| FY23 | 10,586 | 1,211 | 16 | 0.44 |
| FY24 | 10,733 | 1,624 | 147 | 4.13 |
| FY25 | 10,357 | 1,373 | 22 | 0.61 |
Commentary:
Topline flat, margins fluctuating, bottom line inconsistent. Classic turnaround or classic cement trap?
11. Peer Comparison
| Name | Sales (Cr) | ROCE % | ROE % | OPM % | P/E |
|---|---|---|---|---|---|
| UltraTech | 75,955 | 10.9% | 9.3% | 16.5% | 60.2 |
| Ambuja | 35,044 | 10.5% | 8.7% | 17.0% | 35.4 |
| JK Cement | 11,879 | 14.0% | 13.9% | 17.1% | 62.5 |
| Nuvoco | 10,357 | 3.9% | 0.2% | 13.0% | 89.6 |
Comment:
Priced like a star, profits like a rock. Valuation mismatch glaring.
12. Miscellaneous – Shareholding, Promoters
| Category | Stake (%) – Jun 2025 |
|---|---|
| Promoters | 72.02% |
| FIIs | 3.55% |
| DIIs | 19.37% |
| Public | 5.06% |
Goodies:
- Steady promoter holding.
- Retail holding creeping up (hype alert).
- 2 lakh+ shareholders = retail enthusiasm or retail bag-holding?
13. EduInvesting Verdict™
Nuvoco Vistas has the capacity, the brand, and a very rich dad (Nirma). What it doesn’t have yet is consistent profitability. With EBITDA margins improving and Vadraj cement expected to deliver scale benefits, the upside is possible—but execution risk is Everest-level.
Not a multibagger yet, but if EBITDA margin can sustain 18%, interest drops below ₹400 Cr, and Vadraj delivers, this could go from cement to cemented legend.
Metadata
– Written by EduInvesting Analyst | 17 July 2025
– Tags: Cement, Nirma Group, Nuvoco Vistas, Infrastructure, Construction, EBITDA, Vadraj Acquisition, EduInvesting Premium Research
