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Prabhudas Lilladher Report
RR Kabel Ltd. reported soft revenue growth of 10.4% YoY in Q3 FY24 mainly with wire and cable revenue growth of 9.2% driven by export business (+36.7% YoY) while domestic wire and cable revenue was flat YoY.
The company reported ~19.4% volume growth in 9M FY24 and expects healthy growth (20%+) in coming quarter, as strong momentum started in Dec-23 will continue in domestic W&C segment.
Ebitda margin at 6.9% was mainly from change in product mix and increase in export revenue. We continue our positive view on RR Kabel on account of-
strong brand with diverse product portfolio,
well-structured capacity expansion plans,
focus of increasing sales per dealers /distribution and
healthy growth in fast moving electrical good segment.
We downward revised our FY25E/FY26E earnings estimates by 2.4%/0.8% and estimate revenue/Ebitda/profit after tax compound annual growth rate of 20.7%/40.1%/46.0%.
Maintain ‘Buy' with revised target price of Rs 1,857 (Rs 1872 earlier) given strong guidance for coming years.
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