R R Kabel Ltd
R R Kabel Ltd
IndustrialsIncorporated in 1995, RR Kabel provides consumer electrical products used for residential, commercial, industrial, and infrastructure purposes in two major segments, namely wires and cables including house wires, industrial wires, power cables, and special cables; and FMEG including fans, lighting, switches, and appliances.
R R Kabel trades at a premium PE of 52.8x but delivers strong profit growth of 39% CAGR over 3 years with consistent ROE of 19-21%. With 82% analyst buy ratings and robust sales momentum of 28% TTM growth, the premium valuation is partially justified by superior execution in India's electrification theme.
Key Fundamentals
Technical Indicators
Key Insights
Strengths
3- Company is expected to give good quarter
- Company has delivered good profit growth of 30.5% CAGR over last 5 years
- Company has been maintaining a healthy dividend payout of 22.1%
Weaknesses
1- Stock is trading at 10.7 times its book value
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 3d agoR R Kabel trades at a premium PE of 52.8x but delivers strong profit growth of 39% CAGR over 3 years with consistent ROE of 19-21%. With 82% analyst buy ratings and robust sales momentum of 28% TTM growth, the premium valuation is partially justified by superior execution in India's electrification theme.
- Exceptional profit growth of 39% CAGR over 3 years significantly outpaces sector averages for industrial companies
- Strong TTM sales growth of 28% indicates sustained demand momentum and market share gains in cables and wires segment
- Overwhelming analyst consensus with 81.82% buy ratings (9 out of 11 analysts) and zero sell ratings reflects institutional confidence
- Consistent ROE of 19-21% over last 3-5 years demonstrates efficient capital deployment and strong business moat
- 5-year compounded sales CAGR of 29% shows long-duration growth runway aligned with India's infrastructure capex cycle
- Stock has delivered 76% return over 1 year, reflecting strong price momentum and re-rating by the market
- Company expected to deliver good upcoming quarter results, suggesting near-term earnings catalyst
- Healthy dividend payout ratio of 22.1% with 0.41% yield shows shareholder-friendly capital allocation even during high-growth phase
- PE ratio of 52.8x is significantly elevated compared to industrial sector median of 30-35x, leaving limited margin of safety
- Price-to-book of 10.09x is extremely stretched — stock trades at over 10 times book value, pricing in many years of future growth
- Market cap of Rs 26,075 Cr on a business with 21% ROE implies market expects sustained high growth that may not materialize
- Key financial metrics like debt-to-equity, EPS, and ROCE are unavailable, limiting comprehensive fundamental assessment
- 52-week high and low data unavailable (reported as 0), making it difficult to assess current price relative to trading range
- TTM profit growth of 67% appears unsustainably high and may create tough base-effect comparisons in coming quarters
- Dividend yield of only 0.41% offers negligible income cushion if stock price corrects from elevated multiples
- 10-year growth data unavailable suggests limited long-term track record as a listed entity for investors to evaluate
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 14h ago- Broad market volatility elevated Jun 1
Nifty fell 77.95 points to 23,405.60 on Jun 1 with India VIX rising 6.01% to 16.27, reflecting cautious sentiment. Nifty IT declined 5.57% on AI disruption fears, highlighting sector rotation risks.
- Record FY26 revenue and profits Jun 19
RR Kabel posted record FY26 revenue of INR 9,72,236 Lakhs (up 27.62% YoY), EBITDA surging 61.39% to INR 78,381 Lakhs, and PAT rising 57.31% to INR 48,690 Lakhs.
- Final dividend of INR 5.50 Jun 18
Board announced final dividend of INR 5.50 per share for FY26 with record date June 16, 2026 and AGM scheduled July 15, 2026.
- Technical breakout with volume Jun 1
SBI Securities flagged a consolidation breakout on May 29 above the 2049-1886 range with sharp volume rise. Target set at 2200 with stoploss at 1995.
- 48% renewable energy share Jun 19
BRSR filing disclosed 48% renewable energy share at Waghodia plant with reasonable assurance from ZADN & Associates LLP for FY 2025-26.
- Joint Managing Directors appointed May 30
Board designated Mahhesh Kabra and Rajesh Kabra as Joint Managing Directors effective June 1, 2026, subject to shareholder approval.
- Promoters confirm zero encumbrance May 26
Promoters declared no encumbrance on equity shares for FY26 in regulatory filings to BSE and NSE under SEBI regulations.
- BRSR filed for FY 2025-26 Jun 19
RR Kabel filed its Business Responsibility and Sustainability Report for FY 2025-26, a routine annual compliance disclosure.
TL;DR: RR Kabel delivered a standout FY26 with 27.6% revenue growth and 57% PAT growth, signaling strong operational leverage and demand traction in the industrial products space. Technical charts confirm a bullish breakout backed by volume. The main risk is broader market volatility with elevated VIX, though no company-specific headwinds are visible. The trend is clearly improving with record financials and positive momentum.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,517 | 1,597 | 1,610 | 1,634 | 1,754 | 1,808 | 1,810 | 1,782 | 2,218 | 2,059 | 2,164 | 2,536 | 2,964 |
| Expenses | 1,416 | 1,484 | 1,489 | 1,521 | 1,639 | 1,713 | 1,725 | 1,672 | 2,023 | 1,917 | 1,988 | 2,332 | 2,702 |
| Operating Profit | 100 | 113 | 121 | 113 | 115 | 95 | 86 | 111 | 194 | 142 | 176 | 204 | 262 |
| OPM % | 7% | 7% | 8% | 7% | 7% | 5% | 5% | 6% | 9% | 7% | 8% | 8% | 9% |
| Other Income | 15 | 17 | 15 | 12 | 20 | 19 | 7 | 14 | 13 | 13 | 17 | -3 | 15 |
| Interest | 13 | 14 | 14 | 12 | 13 | 12 | 16 | 16 | 15 | 15 | 16 | 19 | 25 |
| Depreciation | 14 | 16 | 17 | 16 | 16 | 16 | 17 | 18 | 19 | 20 | 22 | 24 | 26 |
| PBT | 88 | 99 | 105 | 96 | 106 | 86 | 60 | 90 | 173 | 120 | 155 | 159 | 225 |
| Tax % | 26% | 25% | 29% | 26% | 26% | 25% | 17% | 24% | 25% | 25% | 25% | 26% | 25% |
| Net Profit | 65 | 74 | 74 | 71 | 79 | 64 | 50 | 69 | 129 | 90 | 116 | 118 | 168 |
| EPS in Rs | 6.82 | 7.77 | 6.57 | 6.29 | 6.98 | 5.71 | 4.38 | 6.06 | 11.42 | 7.94 | 10.28 | 10.46 | 14.85 |
Profit & Loss
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Sales | 2,479 | 2,724 | 4,386 | 5,599 | 6,595 | 7,618 | 9,722 |
| Expenses | 2,272 | 2,492 | 4,082 | 5,276 | 6,133 | 7,131 | 8,936 |
| Operating Profit | 207 | 232 | 304 | 323 | 462 | 487 | 786 |
| OPM % | 8% | 9% | 7% | 6% | 7% | 6% | 8% |
| Other Income | 27 | 23 | 50 | 35 | 64 | 53 | 43 |
| Interest | 37 | 29 | 24 | 43 | 54 | 60 | 77 |
| Depreciation | 39 | 45 | 46 | 60 | 65 | 70 | 92 |
| PBT | 158 | 181 | 284 | 256 | 406 | 409 | 659 |
| Tax % | 22% | 25% | 25% | 26% | 27% | 24% | 25% |
| Net Profit | 122 | 135 | 214 | 190 | 298 | 312 | 492 |
| EPS in Rs | 52.32 | 56.6 | 89.42 | 19.84 | 26.43 | 27.56 | 43.52 |
| Div. Payout % | 25% | 0% | 11% | 23% | 23% | 22% | 22% |
Balance Sheet
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Equity Capital | 23 | 24 | 24 | 48 | 56 | 57 | 57 |
| Reserves | 881 | 1,023 | 1,226 | 957 | 1,772 | 2,096 | 2,518 |
| Borrowings | 400 | 507 | 533 | 996 | 360 | 290 | 337 |
| Other Liabilities | 242 | 161 | 268 | 633 | 681 | 1,074 | 1,710 |
| Total Liabilities | 1,545 | 1,715 | 2,051 | 2,634 | 2,869 | 3,517 | 4,621 |
| Fixed Assets | 391 | 399 | 398 | 517 | 535 | 769 | 1,173 |
| CWIP | 15 | 7 | 43 | 44 | 164 | 235 | 72 |
| Investments | 221 | 237 | 268 | 363 | 342 | 239 | 255 |
| Other Assets | 919 | 1,072 | 1,342 | 1,710 | 1,830 | 2,274 | 3,121 |
| Total Assets | 1,545 | 1,715 | 2,051 | 2,634 | 2,869 | 3,517 | 4,621 |
Cash Flow
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Operating | 216 | -71 | 98 | 454 | 339 | 494 | 295 |
| Investing | -128 | -6 | -63 | -334 | -84 | -169 | -263 |
| Financing | -82 | 74 | -32 | -102 | -205 | -191 | -162 |
| Net Cash Flow | 5 | -3 | 4 | 19 | 50 | 134 | -130 |
| Free Cash Flow | 123 | -118 | 35 | 346 | 152 | 129 | 7 |
| CFO/OP | 120 | -13 | 56 | 158 | 94 | 121 | 57 |
Ratios
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Debtor Days | 62 | 56 | 43 | 39 | 35 | 39 | 37 |
| Inventory Days | 71 | 91 | 72 | 69 | 61 | 59 | 81 |
| Days Payable | 34 | 19 | 17 | 35 | 29 | 44 | 63 |
| Cash Conversion Cycle | 99 | 128 | 98 | 72 | 67 | 54 | 56 |
| Working Capital Days | 50 | 62 | 49 | 31 | 40 | 34 | 41 |
| ROCE % | — | 15% | 18% | 16% | 22% | 20% | 28% |
Documents
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Company Information
Incorporated in 1995, RR Kabel provides consumer electrical products used for residential, commercial, industrial, and infrastructure purposes in two major segments, namely wires and cables including house wires, industrial wires, power cables, and special cables; and FMEG including fans, lighting, switches, and appliances.