Buy R R Kabel; target of Rs 1926: Prabhudas Lilladher

Prabhudas Lilladher is bullish on R R Kabel has recommended buy rating on the stock with a target price of Rs 1926 in its research report dated May 29, 2024.

Broker Research

May 30, 2024 / 14:57 IST

Buy

26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on R R Kabel

RR Kabel (RRKABL) reported moderate revenue growth of 15.7% YoY in Q4FY24 mainly with W&C revenue growth of 13.6% driven by export business (+63.3% YoY) while dom. W&C revenue was +1.8% YoY. The company reported ~19.3% vol. growth in FY24 and expects healthy growth (20%+) in coming years, driven by volume growth in both wires & cable businesses with focused approach of capturing demand from infrastructure and emerging sectors. EBITDA margin reported 7.0% (+120bps) in FY24 was mainly from change in product mix, cost reduction and operational efficiency. We continue our positive view on RR Kabel on account of 1) strong brand with diverse product portfolio 2) well-structured capacity expansion plans, 3) focus of increasing sales per dealers /distribution and 4) healthy growth in FMEG segment.

Outlook

We tweak our FY25E earnings and upward revised FY26E earnings estimates by 3.7%. We expect overall Revenue/EBITDA/PAT CAGR of 22.0%/38.3%/43.4%. Maintain ‘BUY’ with revised TP of Rs 1,926 (Rs 1857 earlier) given strong guidance for coming years.

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