Nuvoco Vistas share price: Buy Nuvoco Vistas Corporation, target price Rs 827: HDFC Securities

HDFC Securities has buy call on Nuvoco Vistas Corporation with a target price of Rs 827. The current market price of Nuvoco Vistas Corporation is Rs 539.9.

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 19275.72 Crore) operating in General sector.

Nuvoco Vistas Corporation Ltd. key Products/Revenue Segments include Cement, Other Operating Revenue and Scrap for the year ending 31-Mar-2020.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 2208.56 Crore, down -16.44 % from last quarter Total Income of Rs 2643.24 Crore and up 159.83 % from last year same quarter Total Income of Rs 849.99 Crore. Company reported net profit after tax of Rs 114.28 Crore in latest quarter.

Investment Rationale
The brokerage likes Nuvoco for its balance sheet turnaround after two mega acquisitions and robust operating performance, led by structural revenue and cost triggers. It initiates coverage on the stock with a BUY rating and target price of INR 827/sh (11x its Sep’23E consolidated EBITDA). Nuvoco’s continued strong performance should drive valuation multiple rerating.

Promoter/FII Holdings
Promoters held 71 per cent stake in the company as of Aug 2021, while FIIs held 13 per cent, DIIs 8.9 per cent and public and others 7.1 per cent.

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