India's Nuvoco Vistas rises on Vadraj deal, but Investec sees pain

Nuvoco Vistas

07/01/2025 05:54

** Shares of Indian cement maker Nuvoco Vistas Corp
 NUVO.NS  rise ~2% 
    ** Co says it will acquire Vadraj Cement via insolvency
route after latter's creditors approved NUVO's takeover bid 
    ** Deal to strengthen east-focussed Nuvoco's reach in north
and west markets - co 
    ** Estimated date to start production at Vadraj plants:
Q3FY27, basis National Company Law Tribunal approval
    ** Investec analysts say deal economics could be
challenging, and transaction is "not so attractive" in
oversupplied Gujarat market   
    ** While co said deal won't spike its consol debt levels,
Investec "struggles to see" co meeting its debt guidance
factoring current demand/supply, pricing scenario
    ** Brokerage prefers Ambuja Cements  ABUJ.NS , UltraTech
Cement  ULTC.NS  and J K Cement  JKCE.NS  in the sector 
    ** NUVO has risen 1.3% so far in 2025 after losing over 8%
in 2024 

 (Reporting by Hritam Mukherjee in Bengaluru)
 ((Hritam.Mukherjee@thomsonreuters.com;))