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05 Sep 2025 |
Nuvoco Vistas
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Consensus Share Price Target
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470.60 |
420.67 |
- |
-10.61 |
buy
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05 Aug 2021
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Nuvoco Vistas
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IDBI Capital
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470.60
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IPO Note
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Nuvoco Vista Corp (NVCL), India's 5th largest cement manufacturer (22mt capacity) is coming out with an IPO to raise Rs50bn. IPO size is ~25% of post issue equity with promoter selling stake of Rs35bn and fresh issue of Rs15b. NVCL operates in East region (70% of capacity) and has highest capacity market share of 17% in the region. Company has increased its capacity from ~2.5mtpa in FY16 to 22mtpa in FY21 by way of acquisition (~85% of capacity is inorganic addition). NVCL has plan of organic expansion in east of 2.7mtpa (12% addition) over FY22E and FY23E. We understand NVCL IPO at upper band is priced at 10x FY23E EV/EBITDA or EV/t of USD131 (exhibit 5). Valuation is...
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