⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
NUVOCO - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.7
| Stock Code | NUVOCO | Market Cap | 11,748 Cr. | Current Price | 329 ₹ | High / Low | 478 ₹ |
| Stock P/E | 39.8 | Book Value | 260 ₹ | Dividend Yield | 0.00 % | ROCE | 3.26 % |
| ROE | 0.43 % | Face Value | 10.0 ₹ | DMA 50 | 359 ₹ | DMA 200 | 374 ₹ |
| Chg in FII Hold | -0.19 % | Chg in DII Hold | 0.00 % | PAT Qtr | 56.2 Cr. | PAT Prev Qtr | 32.5 Cr. |
| RSI | 30.2 | MACD | -3.93 | Volume | 3,29,521 | Avg Vol 1Wk | 1,96,281 |
| Low price | 287 ₹ | High price | 478 ₹ | PEG Ratio | -4.38 | Debt to equity | 0.49 |
| 52w Index | 22.0 % | Qtr Profit Var | 227 % | EPS | 8.27 ₹ | Industry PE | 30.0 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT improved from ₹32.5 Cr. to ₹56.2 Cr. (227% growth), but overall margins remain weak with ROE at 0.43% and ROCE at 3.26%.
- Debt Position: Debt-to-equity ratio at 0.49 indicates moderate leverage, manageable but not negligible.
- Cash Flow: Limited dividend yield (0%) suggests reinvestment or cash constraints.
- Return Metrics: Low ROE and ROCE highlight inefficiency in capital utilization.
💹 Valuation Indicators
- P/E Ratio: 39.8, significantly higher than industry average of 30, indicating overvaluation.
- P/B Ratio: Current Price ₹329 vs. Book Value ₹260 → ~1.26, reasonable but not cheap.
- PEG Ratio: -4.38, negative due to inconsistent earnings growth, signaling poor valuation alignment.
- Intrinsic Value: Based on weak returns and high P/E, intrinsic value appears lower than current price.
🏭 Business Model & Competitive Advantage
- Operates in cement and building materials, a cyclical industry tied to infrastructure and housing demand.
- Moderate scale with market cap of ₹11,748 Cr., but lacks strong competitive moat compared to larger peers.
- Recent profit growth shows operational improvement, but sustainability is uncertain.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between ₹287–310, closer to 52-week low.
- Long-Term Holding: Only suitable for patient investors willing to wait for industry upcycle; current fundamentals do not justify aggressive long-term holding.
Positive
- Strong quarterly profit growth (227%).
- Reasonable debt-to-equity ratio (0.49).
- Stock trading near RSI 30, indicating oversold conditions.
Limitation
- Extremely low ROE (0.43%) and ROCE (3.26%).
- High P/E ratio compared to industry average.
- No dividend yield, limiting investor returns.
Company Negative News
- Decline in FII holdings (-0.19%), showing reduced foreign investor confidence.
- Stock trading below 50 DMA (359) and 200 DMA (374), indicating bearish trend.
Company Positive News
- Quarterly PAT surged significantly, showing operational improvement.
- Volume higher than 1-week average, suggesting renewed investor interest.
Industry
- Cement industry P/E at 30, lower than NUVOCO’s valuation, suggesting peers may offer better value.
- Sector growth tied to infrastructure push and housing demand in India.
Conclusion
- NUVOCO shows short-term profit improvement but weak long-term fundamentals.
- High valuation and poor return ratios limit attractiveness.
- Best considered for opportunistic entry near ₹287–310 with cautious long-term outlook.
Would you like me to also prepare a technical chart-based entry/exit strategy alongside this fundamental view so you can align both perspectives?