Citigroup has placed a “buy” recommendation on Nuvoco Vistas as of today, targeting ₹475 per share.

The optimism stems from Nuvoco’s plan to boost cement grinding capacity by 4 million tonnes per annum in Eastern India.

Remarkably, this expansion is expected to be achieved with a relatively minimal ₹200 crore capex, thanks to debottlenecking.

The acquired Vadraj assets are also set for recommencement, potentially lifting total capacity to 35 MTPA.

Cement price increases have strengthened the company’s earnings.

Nuvoco’s sales volume gains appear to have translated into improved market share during Q1 FY26.

Channel checks indicate that cement prices remained steady from July through August.

With fewer capacity additions expected in Eastern and Central India, pricing pressure may remain subdued in the medium term.

This outlook augurs well for Nuvoco’s balance sheet and its ability to fund the Vadraj acquisition.

Citigroup’s stock call reflects confidence in Nuvoco’s volume-led growth and prudent capitalization.