Stay 'Neutral' On RR Kabel Shares Maintains Motilal Oswal — Check Target Price

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

RR Kabel Ltd.’s volume growth in Q1 was below the industry average due to the spillover of domestic orders and cable capacity operating at optimum levels. The ongoing expansion at the Waghodia plant is estimated to boost cable volumes over the next three years.

Management remains confident of achieving its fullyear volume growth guidance of ~18%, supported by a robust 25% growth in cables during 9M FY25.

Additionally, the company projects to achieve break-even in the FMEG business in FY26.

We estimate RR Kabel’s revenue/Ebitda/PAT CAGR at 15%/22%/19% over FY25- 28.

We estimate its cable and wires segment margin at 7.8%/8.0%/8.2% in FY26/FY27/FY28 vs 7.4% in FY25.

We project the net debt (excluding acceptances) to increase to Rs 8.6 billion by FY28 vs Rs 1.1 billion in FY25, led by higher capex. The stock is trading fairly at 36x/32x FY26E/27E EPS. Reiterate Neutral with a target price of Rs 1,430.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.