Nuvoco Vistas shares rise nearly 3% after Q2 profit jumps 78%; Nomura maintains 'Buy'

The company sold 4.7 million tonnes of cement during the quarter, up 9% from a year earlier. "Q2 FY27 was a testament to resilient execution in a challenging operating environment," managing director Jayakumar Krishnaswamy said. Despite intense and erratic rainfall in key markets, logistics and supply chain disruptions, and elevated input costs, the company delivered year-on-year growth in revenue, EBITDA and profit after tax, he said in a statement.

Nomura maintains 'Buy' with Rs 400 target Nomura maintained its 'Buy' rating on Nuvoco Vistas with a target price of Rs 400 after the company's Q2FY27 EBITDA beat estimates on better realisations and marginally higher volumes. In its October 23 report, the brokerage said EBITDA of Rs 4.1 billion was 6% above its estimate and 5% higher than Bloomberg consensus. However, unitary EBITDA declined by more than Rs 200 per tonne quarter on quarter amid higher input and fuel costs.

Higher volumes support quarterly performance Grey cement volumes rose 9% year on year to 4.7 million tonnes despite monsoon-related disruptions, particularly in the East. Blended realisation increased 1% quarter on quarter and was 2% above Nomura's estimate. Unitary EBITDA stood at Rs 869 per tonne, with the sequential decline lower than Nomura had estimated. However, raw material, power and fuel costs per tonne rose 10% quarter on quarter, while overall operating costs per tonne increased 5%.

Demand recovery and capacity expansion in focus Management expects post-monsoon demand recovery and government capital expenditure to support cement volumes in the second half of FY27. The company commissioned its 2-million-tonne Surat grinding unit during the quarter, with further capacity additions planned at Kutch. Nomura retained its target price of Rs 400, based on an enterprise value-to-EBITDA multiple of 8 times. The stock currently trades at 7.8 times its one-year-forward EV/EBITDA multiple.