R R Kabel Ltd. share price target

RRKABEL is well-positioned to outgrow the industry, targeting ~25% growth in cables vs. ~15% industry growth, which could increase its market share from 3.0% to 4.5%.

RR Kabel (RRKABEL)’s 1QFY27 performance was above our estimate, driven by better-than-estimated volume growth in C&W and achieving break-even in its FMEG segment vs. our estimate of segment loss of INR68m.

RRKABEL is experiencing healthy demand across key end-user segments. However, near-term growth is expected to moderate due to the ongoing crisisin West Asia.

RR Kabel’s (RRKABEL) 4QFY26 performance was above our estimate, led by higher-than-estimated revenue and margin in the cable and wire (C&W) segment.

RRKABEL reported strong volume growth of 30% YoY, with cables/wires segments recording ~25%/~30% growth driven by a stronger domestic demand alongside healthy export growth. The company’s capex plans are in line with its long-term growth strategy, supporting timely capacity expansion plans.

RR Kabel’s (RRKABEL) 3QFY26 performance was above our estimate, led by higher-than-estimated revenue growth in both C&W; and FMEG. Consol. revenue increased ~42% YoY to INR25.4b (~14% beat).

RRKABEL’s 2QFY26 earnings were above our estimates, led by a higherthan-estimated margin in C&W. Revenue grew ~20% YoY to INR21.6b (in line), driven by robust growth of ~22% in the C&W segment.

We attended the plant visit event organized by R R Kabel (RRKABEL) at its Waghodia plant in Gujarat, where we interacted with the senior management team, followed by a tour of the plant.

RRKABEL’s 1QFY26 earnings were in line with our estimate. Revenue/EBITDA grew ~14%/50% YoY to INR20.6b/INR1.4b.

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...

RRKABEL’s 4QFY25 earnings beat our estimate, led by higher-than-estimated revenue/margin in Cables and Wires (C&W). Total revenue increased ~26% YoY to INR22.2b (~7% beat).

Issue Snapshot: Issue Open: Sep 13 Sep 15, 2023 Price Band: Rs. 983 1035 (Discount of Rs 98 per share for all eligible employees) *Issue Size: 1,89,75,938 eq sh (including employee reservation of Rs 10.8 cr) (Fresh Issue of Rs 180.0 cr + Offer for sale of 17,236,808 eq sh) Reservation for: QIB upto 50% eq sh Non-Institutional atleast 15% eq sh ((including 1/3rd for applications between Rs.2 lakhs to Rs.10 lakhs)) Retail atleast 35% eq sh Face Value: Rs 5 Book value: Rs 134.57 (June 30, 2023) Bid size: - 14 equity shares and in multiples thereof 100% Book built Issue IPO Note-R R Kabel Limited 13092023