This Small-Cap stock has emerged as the fifth-largest cement company in India following the National Company Law Tribunal’s (NCLT) approval for its Rs.1,800 crore acquisition of Vadraj Cement. This strategic move strengthens the company’s market position and expands its footprint in the competitive cement sector.
Price Variation
During Friday’s trading session, shares of Nuvoco Vistas Corporation Ltd reached an intra-day high of Rs.322.00 each, rising 1 percent from the previous closing price of Rs.319.05 per share. However, the shares retreated slightly and are trading at Rs.315.20 apiece.
Nuvoco Vistas Corporation, a prominent player in the cement industry and part of the Nirma Group, has secured approval from the National Company Law Tribunal’s (NCLT) Mumbai Bench for its resolution plan to acquire Vadraj Cement under the Insolvency and Bankruptcy Code for Rs.1,800 crore, as per a company filing dated April 3. With this acquisition, Nuvoco will become India’s fifth-largest cement company.
In January 2025, Nuvoco received a letter of intent to acquire the Gujarat-based Vadraj Cement through the insolvency process. The company had earlier announced plans to invest Rs.1,800 crore for the acquisition, with further investments planned over time to enhance operations and capacity.
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Future Investments
Nuvoco also intends to invest an additional Rs.900–1,200 crore in Vadraj Cement over the next 18 to 24 months to upgrade and expand the acquired operations. Initially incorporated as Lafarge India in 1999, the company was renamed Nuvoco Vistas after its acquisition by the Nirma Group in 2016.
Manufacturing Capacity
Following the acquisition, Nuvoco Vistas’ cement production capacity is set to increase to 31 million tonnes per annum (MTPA), while its clinker capacity will reach 17 MTPA by the third quarter of FY27. This development positions Nuvoco as the fifth-largest cement group in India by overall capacity. The acquisition also enhances its presence in Western India, making it the third-largest player by capacity across Gujarat and Maharashtra.
Financial Overview
In its latest financial results, Nuvoco Vistas Corporation Ltd posted a consolidated revenue of Rs.2,409 crores for Q3 FY25, showing a slight decline from Rs.2,421 crores recorded in Q3 FY24. The company also reported a net loss of Rs.61 crores in Q3 FY25, compared to a net profit of Rs.31 crores during the same quarter last year.
Ratio Analysis
The company has a Return on Capital Employed (ROCE) of 4.44 percent and a Return on Equity (ROE) of 0.55 percent. Furthermore, the company maintains a current ratio of 0.73, a debt-to-equity ratio of 0.55, and an EV to Sales of 1.58.
Written by – Ashok Kumar