Buy R R Kabel; target of Rs 1292: Prabhudas Lilladher

Prabhudas Lilladher is bullish on R R Kabel has recommended buy rating on the stock with a target price of Rs 1292 in its research report dated May 05, 2025.

Broker Research

May 06, 2025 / 10:19 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

Prabhudas Lilladher's research report on R R Kabel

RRKABEL reported strong revenue growth of 26.4% YoY in Q4FY25, driven by strong W&C volume growth of 13.6% supported by capacity additions. W&C Volume growth for FY25 stood at 7.1%, supported by a balanced contribution from both volume and value growth. The company expects volume to grow 18% in FY26. Gross margin expansion was driven by higher realizations and product mix, and further expansion in EBITDA margin was supported by enhanced operational efficiency. The company expects W&C EBIT margin to improve ~300bps by FY28 and FMEG EBIT to break even by H1FY26. RRKABEL targets 18% CAGR in W&C revenue led by cables, 25% CAGR in FMEG revenue, and 2.5x growth in EBITDA over the next 3 years through its Project RRrise.

Outlook

We expect revenue/EBITDA/PAT CAGR of 16.2%/29.8%/31.8% over FY25-27E. We tweaked FY26/FY27E earnings estimates. We maintain our TP of Rs 1,292, based on 27x FY27E earnings. Maintain ‘BUY’.

For all recommendations report, click here