RR Kabel
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
RR Kabel's recent performance underscores a robust outlook, driven by strategic initiatives and favorable market conditions. Management's confidence stems from a record Q1 FY27, bolstered by the successful execution of the 'Project RRise' strategy, which emphasizes high-margin B2B and power cable projects. The FMEG segment has reached operational breakeven, validating the company's premiumization strategy. With a significant INR 12 billion capex plan aimed at expanding cable capacity, RR Kabel is well-positioned to capitalize on the growing demand for infrastructure and electrification in India. Vista's financial outlook reflects stable revenue growth and margins, supported by these strategic developments. The expected upside of approximately 51.8% aligns with the company's trajectory towards achieving a 10.5% EBIT margin by FY28. However, potential headwinds include commodity price volatility and geopolitical risks affecting export markets. Over the next 12-24 months, key opportunities lie in expanding international market penetration and enhancing product offerings, while watchpoints include execution risks related to capacity expansions and competition in the FMEG segment
Why We Like This Stock
- Successful execution of 'Project RRise' enhances capacity and margin potential
- FMEG segment achieving operational breakeven supports profitability goals
- Strong demand for infrastructure and electrification in India provides a favorable growth backdrop
Things To Watch Out For
- Commodity price volatility poses risks to margins and profitability
- Geopolitical tensions may disrupt export markets, particularly in the Middle East
- Execution risks related to capacity expansion could impact growth timelines
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 6,595 | 7,618 | 9,722 | 11,577 | 13,552 |
| Profit Before Tax (Cr.) | 401 | 397 | 678 | 907 | 1,034 |
| PBT Margin | 6.1% | 5.2% | 7.0% | 7.8% | 7.6% |
| Net Profit (Cr.) | 301 | 298 | 514 | 691 | 788 |
| Earnings Per Share | 26.6 | 26.3 | 45.4 | 61.1 | 69.6 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Kotak Securities | ▼ Reduce | 1,900 | 07-Sep-2026 |
| Motilal Oswal | ▲ Buy | 3,400 | 27-Aug-2026 |
| CLSA | ▲ Outperform | 2,850 | 28-Jul-2026 |
| Choice Equity | ▲ Buy | 2,930 | 28-Jul-2026 |
| Citigroup | ▲ Buy | 3,000 | 28-Jul-2026 |
| HSBC | ▲ Buy | 2,830 | 28-Jul-2026 |
| Moneycontrol | ► Equalweight | nan | 28-Jul-2026 |
| Prabhudas Liladhar | ► Hold | 2,596 | 28-Jul-2026 |
Company Overview
Show Company Profile
R R Kabel Limited manufactures and sells wires and cables, and fast-moving electrical goods under the RR Signature brand name in India and internationally. It offers house wires, industrial wires, low and medium voltage power cables, solar, and special cables. The company also provides fans, lighting, switches, switchgear, and other accessories; and water heaters, room heaters, iron, air coolers, and kitchen appliances. Its products are used in residential, commercial, industrial, and infrastructure sectors. The company was formerly known as Ram Ratna Agro-Plast Limited and changed its name to R R Kabel Limited in November 2000. R R Kabel Limited was incorporated in 1995 and is based in Mumbai, India.