Brokerage firm Prabhudas Lilladher has maintained a positive rating on Nuvoco Vistas with a target price of Rs 560. The cement maker is aiming for a capacity of 35 million tonnes by FY28 to strengthen its presence in North and East India. While operational efficiency is improving, investors are keeping a close watch on the company's rising debt levels and high input costs.
Prabhudas Lilladher has issued a target price of Rs 560 for Nuvoco Vistas, citing strong operational performance and a clear expansion roadmap. The company, which focuses on North and East India, reported a 9.3% year-on-year volume growth in the second quarter of fiscal year 2027. This growth was largely driven by demand from the infrastructure sector, which remains a key pillar for the cement industry.
The cement maker achieved an EBITDA per tonne of Rs 869 during the quarter, a figure that exceeded earlier expectations. To sustain this momentum, management has implemented price increases in the trade and non-trade segments across North and East India. These measures are designed to help the company navigate challenges related to rising prices of raw materials like pet coke and polymer granules, which have put pressure on profit margins.
The company’s growth strategy centers on reaching a total production capacity of 35 million tonnes per annum by FY28. This expansion plan includes a significant capital expenditure of Rs 12 billion for FY27, with an additional Rs 8 to 9 billion allocated for FY28. A key area of interest for the company is the Vadraj facility, where management expects Gujarat volumes to reach an annual run rate of 2 million tonnes by the final quarter of FY27.
Despite these growth plans, the company’s financial position requires careful monitoring. Net debt has risen to over Rs 50 billion as of September 2026, compared to Rs 45 billion in March 2026. This increase in debt is a factor for shareholders to track, as higher leverage can impact financial flexibility. Management has expressed a commitment to reducing this debt burden through the release of working capital and expectations of better cash flows in the second half of the fiscal year.
For investors, the key monitorables include the execution of capacity expansion projects and the ability of the company to manage its debt levels while maintaining profit margins in a competitive sector. The future performance will depend on the sustained demand for cement in the infrastructure space and how well the company can offset ongoing input cost pressures.