Nuvoco Vistas (NUVOCO)
CyclicalFairStock Score: 64/100 — STEADY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹331.55 |
| Market Cap | ₹11,841.51 Cr |
| P/E Ratio | 30.67 |
| ROCE | 3.93% |
| ROE | 4.27% |
| Dividend Yield | 0% |
| Profit Growth | 19.8% |
| Debt/Equity | 0.48 |
| Sales Growth | 8.9% |
| Free Cash Flow | ₹991.4 Cr |
| Promoter Holding | 72.02% |
| 52-Week Range | ₹276.25 — ₹453.25 |
| Sector | Cement & Cement Products |
| Book Value | ₹286.39 |
Strengths
- Free cash flow of ₹991 Cr despite low reported profit shows possible cash conversion strength.
- Piotroski F-Score of 8/9 suggests improving financial fundamentals.
- Promoter holding of 72.02% aligns ownership with public shareholders.
- Debt/equity of 0.45 and P/B of 1.19 provide some balance-sheet cushion.
- Sales growth of 8.06% and a sharp profit uptick indicate business activity is improving.
Concerns
- Very low profitability: ROE 4.27%, ROCE 3.93%, and latest quarterly net margin under 2%.
- Expensive on earnings: P/E 30.51 and EV/EBITDA 148.66 leave little room for error.
- No dividend yield means shareholders depend entirely on capital appreciation.
- Altman Z-Score of 1.81 is in the caution zone; price is also above Graham Number of ₹246.91, giving a negative margin of safety.
AI Analysis
First, I ask what I'm buying: a cement producer, a commodity business. In this industry, the best operators survive through scale, cost control, and pricing power. Nuvoco's numbers don't yet prove it has that. ROE is only 4.27% and ROCE is 3.93% — far below what I need to compensate for risk. Sales grew 8.06%, but the 179.93% profit growth is off a tiny base; the latest quarter shows ₹2,701 Cr of sales supporting just ₹49 Cr of net profit, a margin below 2%. At ₹299, I am paying 30.51 times trailing earnings and an EV/EBITDA of 148.66. That is not a margin of safety. Book value is ₹252.06, so the stock trades at 1.19 times book, but Graham Number is ₹246.91 and the stated margin of safety is -32.90%. The balance sheet is not alarming: debt/equity of 0.45 and free cash flow of ₹991 Cr are positives, and a Piotroski score of 8/9 suggests improving operations. But Altman Z-Score of 1.81 sits in the caution zone. Zero dividend is another strike; I want cash returned or reinvested at excellent rates. The DCF figure of ₹1,486.03 looks seductive, but with 3.93% ROCE, I refuse to anchor to it. This is a cyclical recovery story, not a compounding machine. For a retail investor, patience is crucial. I would wait for a lower price, better margins, or proof that ROE can consistently exceed the cost of capital.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer