Buy Nuvoco Vistas Corporation, target price Rs 591: HDFC Securities

HDFC Securities has buy call on Nuvoco Vistas Corporation with a target price of Rs 591. The current market price of Nuvoco Vistas Corporation is Rs 343.7. Time period given by analyst is one year when Nuvoco Vistas Corporation Ltd. price can reach defined target.

Nuvoco Vistas Corporation Ltd., incorporated in the year 1999, is a Small Cap company (having a market cap of Rs 12293.31 Crore) operating in General sector.

Nuvoco Vistas Corporation Ltd. key Products/Revenue Segments include Cement, Construction Chemicals, Other Operating Revenue and Scrap for the year ending 31-Mar-2022.



Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 2665.80 Crore, down -9.48 % from last quarter Total Income of Rs 2945.12 Crore and up 20.70 % from last year same quarter Total Income of Rs 2208.56 Crore. Company reported net profit after tax of Rs 20.47 Crore in latest quarter.

Investment Rationale
The brokerage maintains BUY on Nuvoco Vistas, with an unchanged TP of INR 591/share (11x its consolidated Mar-24E EBITDA). It continues to like it for its leadership presence in the east, large retail focus, and various margin initiatives. In Q1FY22, Nuvoco reported broadly in-line EBITDA (vs ours/consensus estimate). Its unitary EBITDA remained flattish QoQ at INR 789 per MT on healthy price recovery, despite the ~20% rise in fuel prices QoQ.

Promoter/FII Holdings
Promoters held 71.72 per cent stake in the company as of 30-Jun-2022, while FIIs owned 3.65 per cent, DIIs 19.06 per cent.