CITI Research initiates coverage on RR Kabel with 'Buy', sees 21% upside

In the December quarter, RR Kabel reported a marginal 0.7 percent year-on-year decline in profit after tax (PAT) to Rs 71 crore, accompanied by a 10.4 percent year-on-year increase in revenue to Rs 1,633.5 crore.

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26 Aug, 2025 12:21

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Citi Research has initiated coverage on RR Kabel Ltd with a 'Buy' rating, citing the improved margin outlook for the company. Citi Research has a target price of Rs 1,728 on RR Kabel stock, which implies a 21 percent upside from the closing price of Rs 1,433.30 on March 19.

Over the past six months, RR Kabel's share price has surged by nearly 20 percent.

CITI said that the wire and cable manufacturer has scaled up its business and that will drive the company's margin improvement.

The broking firm highlighted that RR Kabel's profit margin is below the average profit margin of other companies operating within the same industry and exceeding industry standards should be relatively easy for the company.

CITI also emphasised the firm's robust distribution network and early achievements in the fast-moving electrical goods (FMEG) sector.

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

CITI sees the revenue growing at a compound annual growth rate (CAGR) of 18 percent and expects the company's margin to expand by 225 basis points (bps) over FY23-26E.

RR Kabel made its debut on the stock exchanges on September 20, 2023, with an opening price of Rs 1,180, reflecting a 14 percent premium over the intitial public offer (IPO) price of Rs 1,035.

In the December quarter, RR Kabel reported a marginal 0.7 percent year-on-year decline in profit after tax (PAT) to Rs 71 crore, accompanied by a 10.4 percent year-on-year increase in revenue to Rs 1,633.5 crore.

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