Nuvoco Vistas Corporation Ltd.

“Nuvoco Vistas is a sub-scale, capital-destroying cement business earning 4% ROCE against a 10%+ cost of capital, with a fragile regional moat being actively eroded by larger competitors expanding into East India. The Nirma Group's track record of overpriced acquisitions, re-leveraging without earning returns on existing capital, and zero shareholder distributions over five years signals promoter interests misaligned with minority shareholders. At 1.2x book and 9x EV/EBITDA the stock is not cheap enough to compensate for structurally inferior economics, and even bull-case returns are bond-like. Capital is far better deployed in higher-quality Indian cement operators or other sectors entirely.”