RR Kabel lists at 14% premium: Should you hold, buy, or book some profit?

Several analysts have suggested booking profits in RR Kabel stock.

RR Kabel listed on bourses on September 20 at Rs 1,180 with a 14 percent premium over the IPO price of Rs 1,035. The stock was trading at Rs 1,195.90 on the NSE and Rs 1,192.75 on the BSE at 12:50pm.

While several analysts have suggested booking profits, domestic brokerage Prabhudas Lilladher recommended a ‘buy’ rating with a target price of Rs 1,407. Let's take a look at the market views on the RR Kabel stock.

Exit position after booking listing gains: Swastika Investmart

RR Kabel Limited is a well-established wire and cable manufacturer with a strong brand and quality products. It listed at Rs 1,180 per share, 14 percent higher than its IPO price of Rs 1,035, and became the first IPO to list under the T+3 cycle.

"Our suggestion to investors is to exit the position after booking listing gain, however, those who want to hold should maintain a stop loss at Rs 1,065,” said Anubhuti Mishra, Equity Research Analyst.

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Book profits on the listing day: Mehta Equities

Despite an overpriced offer and subdued financials, RR Kabel managed to sail with decent subscription demand, especially from the QIB segment, which got oversubscribed on the last day by 52x.

"Considering growth rationale and overpriced valuation risk, we recommend allocated investors to book profits on the listing day while risk-seeking investors can hold for the long term as we believe RR Kabel could benefit from the industry tailwinds given its higher presence in the B2C segment which is expected to grow on longer run,” said Prashanth Tapse, Research Analyst and Senior VP-Research.

Fresh buying not recommended on listing day: Hem Securities

“We recommend booking profits partially and holding partly as the company has scaled the B2C business in the large and growing wires and cables industry. We recommend no fresh buying on the listing day,” said Astha Jain, Senior Research Analyst.

Prabhudas Lilladher suggests buy, sets target price at Rs 1,407

“We initiate coverage on RR Kabel with a ‘buy’ rating and set the target price at Rs 1,407, valuing the company at 35x FY25 earnings. We believe RR Kabel is a play on several opportunities in the W&C segment, given (1) a strong brand with a diverse product portfolio, (2) well-structured capacity expansion plans, (3) an increasing dealers/distribution network, and (4) a distribution-led export business,” said Praveen Sahay – Research Analyst.