Debutant stock trades below IPO price; brokerage sees 54% upside

Nuvoco Vistas, Nuvoco Vistas shares, Nuvoco Vistas share price, Nuvoco Vistas stock, Nuvoco Vistas stock price, Nuvoco Vistas news

NEW DELHI: Recent market debutant Nuvoco Vistas, which has been trading below its issue price of Rs 570, has just received a ‘buy’ call from a domestic brokerage. The target that the brokerage has put out suggests 54 per cent upside for the cement stock from here on.

HDFC Securities’ institutional team pegs the loss-making Nuvoco Vistas at 11 times its consolidated September 2023 Ebitda to arrive at a 12-month target price of Rs 827. On Tuesday, the stock traded at Rs 537, down nearly 6 per cent from issue price.

HDFC Institutional Equities said the company has grown inorganically to become the sixth largest cement company in India and has consolidated its leadership position in the East.

A large retail presence in the high-growth east region buoyed Nuvoco’s operating margin during FY20-21, it said, adding that Nuvoco should further expand its margin to Rs 1,177 per million tonnes by FY23, riding on cost initiatives and synergy benefits from the integration of the recently acquired NU Vista (erstwhile Emami Cement).

The scrip got listed on August 23 at a 17 per cent discount to issue price.

HDFC Securities said Nuvoco’s leverage ratio has stretched, owing to the two mega acquisitions. However, with the Rs 1,500 crore equity infusion from the just concluded IPO, strong operating cash flow outlook and lower capex outgo, net debt-to-ebitda should cool off to below 1 time FY23 onwards compared with nearly 4 times during FY17-21.

Nuvoco recently added waste heat recovery systems (WHRS) and is also expanding captive power plants (CPPs) to bolster imlow-cost power consumption share to 70 per cent from 50 per cent in FY21, adding Rs 50 per million tonnes in cost savings.

“The integration of the recently-acquired NU Vista into Nuvoco along with focus on further expanding its blended cement production ratio is expected to unlock another Rs 200 per tonne of unitary Ebitda by FY23. These moves along with healthy pricing should drive up consolidated unitary Ebitda by Rs 235 million tonne by FY23, despite factoring in fuel cost inflation and the impact of accelerated capacity additions by competitors,” HDFC Securities said.

The brokerage said debt reduction would continue despite its ongoing clinker and cement expansion and even after considering the capex acceleration for the Karnataka greenfield plant by late FY25.

Internet Explorer Channel Network
News Related

OTHER NEWS

Zwei Kinder kommen bei Wohnhaus-Brand ums Leben

Am späten Sonntagabend sind beim Brand eines Wohnhauses in Leuzigen zwei Kinder ums Leben gekommen. Vier Personen konnten das Haus verlassen und wurden ins Spital gebracht. Die Kantonspolizei Bern hat ... Read more »

Amazon will mehr Abstimmung mit Behörden gegen Produktpiraten

© KEYSTONE/EPA/FRIEDEMANN VOGEL Amazon hat eine breitere Kooperation zwischen Behörden und Unternehmen im Kampf gegen Produktpiraterie angeregt. Nötig seien unter anderem bessere Grenzkontrollen sowie ein härteres Vorgehen gegen Produktfälscher in ... Read more »

Before debt woes, China Evergrande's ambitious car making goals stunned industry

1 / 2Before debt woes, China Evergrande’s ambitious car making goals stunned industryTest cars by Evergrande are parked outside the Evergrande NEV’s research center in Shanghai SHANGHAI/HONG KONG (Reuters) – ... Read more »

More than 700,000 visits to Expo 2020 Dubai since October 1

© Provided by The National (From L) Chinese friends Sichen, 7, Zimo, 7, and Leo, 8, at Expo 2020 Dubai. Victor Besa/The National. LIVE BLOG: Latest pictures and video from ... Read more »

Two Hindu men killed, temples vandalised in Bangladesh violence

© Provided by Al Jazeera Members of the Islami Andolan Bangladesh party protest outside Baitul Mukarram mosque against the alleged desecration of the Quran, in Dhaka [Monirul Alam/EPA] Police in ... Read more »

Banks collaborate with AKPK to help most vulnerable customers

© Provided by New Straits Times THE pandemic left almost no one around the world unscathed when Covid-19 struck last year. Locally, our situation was exacerbated by the emergence of ... Read more »

Apple buang Quran Majeed dari AppStore di China

Quran Majeed adalah salah satu aplikasi mudah alih Al-Quran paling popular di dunia. Di Apple AppStore sahaja, ia diberi markah 4.8/5 bintang oleh hampir 150 ribu pengguna, menunjukkan ia sangat ... Read more »

This Malaysian got his photo featured on Apple's Instagram page. Here's how you can do it too

Back in July, photographer Badrul Akram Badaruddin posted a picture featuring the right eye of his eldest son, Luth Fateh Badrul Akram. This week, it was posted on Apple’s official Instagram ... Read more »

Health Minister Accused Of Public Bullying & Working With Evil Spirits By Antivaxxers

Subscribe to our Telegram channel for the latest stories and updates. From being called a bully, to being accused of allying with the devil, Health Minister Khairy Jamaluddin Abu Bakar (KJ) sure ... Read more »

Can I travel to Queensland for Christmas? When will the state reopen to COVID-19 hotspots? What are its vaccine targets?

© Provided by ABC Health Will Queensland’s border reopening plan get your loved ones home for Christmas? (Supplied: Pixabay) After months of uncertainty and growing calls for a clear pathway ... Read more »

Snow-like hail and tornado lash Darling Downs in severe storm event

© Provided by ABC NEWS Hail blanketed the Coles car park at Highfields. (Supplied: Anita Coverdale) Queensland’s Darling Downs is reeling from severe storms that hit “like a freight train”, ... Read more »

Benjamin Hoffmann's murder trial paused while defence seeks 'very late' psychiatric report

© Provided by ABC NEWS Defence lawyers Peter Maley and Jon Tippett walk out of the NT Supreme Court. (ABC News: Michael Franchi) Benjamin Hoffmann’s nine-week murder trial will take ... Read more »

Scott Morrison's pick for Gilmore, Andrew Constance, faces pre-election showdown

© Provided by ABC NEWS Paul Ell is expected to challenge Andrew Constance for Liberal party pre-selection. (Facebook) Former New South Wales transport minister Andrew Constance is expected to face several ... Read more »

Simple trick that can see an average income earner get $8,000 on tax

© Provided by Daily Mail MailOnline logo Australians can get a mega tax refund by shrewdly adding up their working-from home expenses and claiming a big super contribution as a ... Read more »

Three men nabbed for mass shooting of partygoers in Mitchells Plain

© Provided by SowetanLive A 24-year-old woman was killed and seven others, including children aged between five and 26, were injured when the occupants of a Honda Ballade shot at partygoers in ... Read more »

Myanmar to free over 5,000 political prisoners

© Provided by dw.com The prisoners are to be freed to mark the Thadingyut festival later in October Myanmar will release a total of 5,636 prisoners jailed for protesting the ... Read more »

Gogo gifted with R10,000 shopping voucher by ANC vows she will vote for Mandela

© Provided by Times Live These were the words of Lisebo Molefe of Makwane in Phuthaditjhaba, Free State, on Sunday following a surprise visit by ANC president Cyril Ramaphosa. “Mandela ... Read more »

Unisa's LenkaBula throws law book at student activist

© Provided by SowetanLive Unisa vice-chancellor and principal professor Puleng LenkaBula has obtained an interim order prohibiting a former student leader from publishing false information about her. The order was ... Read more »

Police make public plea in race to find missing Cleo

© Provided by Daily Mail MailOnline logo Police have made a desperate plea for anyone who visited a remote campsite in Western Australia where a four-year-old girl went missing to ... Read more »

Online hate for MPs is 'out of control', says deputy PM, in wake of Sir David Amess murder

The deputy prime minister has said online hate is “out of control” but a wedge should not be put in between MPs and their constituents after the murder of Sir ... Read more »

Life after COVID: EU re-thinks budget rules for new era

© Reuters/Yves Herman FILE PHOTO: European Union flags flutter outside the EU Commission headquarters in Brussels By Jan Strupczewski BRUSSELS (Reuters) – So often the source of rows between its ... Read more »

Pubs & clubs set to reopen but COVID certs likely to remain for months

© Provided by Extra.ie Pubs, clubs, hotels and churches are to reopen as politicians take charge of rolling back COVID restrictions. At the same time, the ‘screw will be turned ... Read more »

Wheelchair-bound ex-cop fails in bid to overturn conviction over RM700 bribe

© Provided by Free Malaysia Today Wheelchair-bound Rijali Solah outside the court. The ex-policeman, who had served the force for 30 years, suffered a stroke while in prison for taking ... Read more »

Media Prima management pay courtesy call to Penang governor

© Provided by New Straits Times GEORGE TOWN: Media Prima Bhd (MPB) top management today paid a courtesy call on Penang Yang di-Pertua Negeri, Tun Ahmad Fuzi Abdul Razak, here, ... Read more »

More than 20 dead after floods in south India

© Reuters/STRINGER Rescue workers carry the body of a victim after recovering it from the debris of a residential house following a landslide in Kokkayar By Jose Devasia KOCHI, India ... Read more »

Paris Hilton's Alice in Wonderland-themed bridal shower

© Bang Showbiz Paris Hilton Paris Hilton had an ‘Alice in Wonderland’-themed bridal shower over the weekend. After the 40-year-old heiress and her fiance, Carter Reum, enjoyed a lavish joint ... Read more »

Travis Barker and Kourtney Kardashian are engaged!

© Bang Showbiz Travis Barker and Kourtney Kardashian (c) Instagram Travis Barker and Kourtney Kardashian are engaged. The Blink-182 drummer and the Poosh founder started dating earlier this year, and ... Read more »

Abu Dhabi's Peter Rosalita to be a guest on 'The Ellen DeGeneres Show'

© Provided by The National Peter Rosalita will appear on ‘The Ellen DeGeneres Show’ on Tuesday UAE time. Photo: Mary Jane Villegas A month after his time on America’s Got ... Read more »

Ford to make electric car parts on Merseyside

© Ford Europe Ford is to invest hundreds of millions of pounds in its Halewood plant on Merseyside, helping safeguard 500 jobs. The factory will be Ford’s first European plant ... Read more »

Min Aung Hlaing blames opposition for violence after ASEAN snub

© Provided by Al Jazeera ASEAN has said it cannot invite Min Aung Hlaing to the group’s summit this month because the military has made ‘insufficient progress’ in th five ... Read more »

Melbourne corrections officer who sold contraband to prisoners avoids jail

A professional bodybuilder who supplied prisoners with contraband when he was working as a corrections officer in Melbourne’s west has managed to avoid his own jail sentence. Wesley Newell, 43, ... Read more »

'Our son would still be alive if he had been seen by a GP in person'

David Nash, who had four remote consultations with doctors and nurses at a Leeds GP practice over a 19-day period before he died – PA The parents of a law ... Read more »

California port director pegs supply chain disruption on consumer demand

Arthel Neville interviews the executive director of the Port of Long Beach about its pilot program operating on a 24/7 schedule. Will this ease the bottleneck in the supply chain? Read more »

Supply chain crisis could last into next year, Pete Buttigieg warns

Supply chain crisis could last into next year, Pete Buttigieg warns Transportation Secretary Pete Buttigieg said on Sunday that it was likely that the US would see some supply chain ... Read more »

Zerodha users face glitch on trading platform while selling shares

MUMBAI: Users of Zerodha were facing a technical issue while selling their shares on the online trading platform, the company said today. “You may face an issue with authorizing the ... Read more »

Afghan Taliban's victory boosts Pakistan's radicals

© Copyright 2021 The Associated Press. All rights reserved. Pakistan Taliban Fallout – Copyright 2021 The Associated Press. All rights reserved. In Pakistan’s rugged tribal regions along the border with ... Read more »

Analysis-Echoing the opposition, Japan's Kishida woos voters with Abenomics critique

© Reuters/ISSEI KATO Leaders of Japan’s main political parties attend a debate session ahead of October 31, 2021 lower house election in Tokyo By Linda Sieg TOKYO (Reuters) – Japanese ... Read more »

Two men in hospital after being stabbed inside Melbourne shopping centre

© AFP via Getty Images File image: Police has arrested a 20-year-old in relation to the unprovoked stabbing – AFP via Getty Images Two men were rushed to the hospital ... Read more »

Jangan jadikan belanjawan alasan tangguh debat, Lim beritahu Wee

© Provided by Free Malaysia Today Wee Ka Siong mahu perdebatan itu diadakan selepas pembentangan Belanjawan 2022, sebaik-baiknya 2 Nov, tetapi Lim Guan Eng bertegas ia diadakan pada 23 Okt ... Read more »

ECRL: Isu ambil alih tanah di Kelantan selesai

© Provided by Sinar Harian KOTA BHARU – Kerja-kerja pengambil alihan tanah untuk projek pembinaan laluan Kereta Api Pantai Timur (ECRL) melibatkan jarak 43.86 kilometer (km) di negeri ini telah ... Read more »