RR Kabel
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
RR Kabel's recent operational performance has exceeded expectations, particularly in the Wires & Cables (W&C) segment, which reported a 25% year-over-year volume growth. Management's focus on high-value cable segments and international expansion is expected to drive revenue growth, with a projected 20% CAGR from FY26 to FY29. The company's substantial INR 12 billion capex plan aims to enhance capacity and operational efficiencies, supporting margin expansion despite potential raw material price volatility. The Fast-Moving Electrical Goods (FMEG) segment has reached operational breakeven and is anticipated to contribute positively to profitability moving forward. While the industry is experiencing structural tailwinds from increased infrastructure investments, RR Kabel must navigate execution risks related to capacity expansions and geopolitical challenges affecting exports. Vista's financial outlook reflects stable revenue growth and margins, with a fair valuation aligned with intrinsic value. Over the next 12-24 months, key opportunities include the successful execution of expansion projects and the potential for margin improvement, while watchpoints include raw material price fluctuations and competitive pressures in the FMEG segment
Why We Like This Stock
- Strong volume growth in the Wires & Cables segment, indicating robust market demand
- Significant capex plan aimed at enhancing capacity and operational efficiencies
- FMEG segment achieving operational breakeven, contributing positively to profitability
Things To Watch Out For
- Execution risks related to the timely completion of capacity expansion projects
- Geopolitical challenges impacting export potential, particularly in the Middle East
- Volatility in raw material prices could pressure margins in the near term
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 6,595 | 7,618 | 9,722 | 11,613 | 13,854 |
| Profit Before Tax (Cr.) | 401 | 397 | 678 | 1,029 | 1,129 |
| PBT Margin | 6.1% | 5.2% | 697.4% | 8.9% | 8.2% |
| Net Profit (Cr.) | 301 | 298 | 514 | 783 | 860 |
| Earnings Per Share | 26.6 | 26.3 | 45.4 | 69.2 | 76.0 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| CLSA | ▲ Outperform | 2,850 | 28-Jul-2026 |
| Choice Equity | ▲ Buy | 2,930 | 28-Jul-2026 |
| Citigroup | ▲ Buy | 3,000 | 28-Jul-2026 |
| HSBC | ▲ Buy | 1,770 | 04-May-2026 |
| Kotak Securities | ▼ Sell | 1,950 | 28-Jul-2026 |
| Moneycontrol | ► Equalweight | nan | 28-Jul-2026 |
| Motilal Oswal | ▲ Buy | 2,960 | 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.