Now Reading: R R Kabel shares jump 2% as Q1 profit doubles; CLSA bullish
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R R Kabel shares jump 2% as Q1 profit doubles; CLSA bullish
R R Kabel shares ended 2.04% higher at Rs 2,576.90 on Tuesday after touching a fresh intraday high of Rs 2,775. The company reported a standalone PAT of Rs 203.1 crore in…
The Story in Brief
R R Kabel shares ended 2.04% higher at Rs 2,576.90 on Tuesday after touching a fresh intraday high of Rs 2,775. The company reported a standalone PAT of Rs 203.1 crore in Q1FY27, up from Rs 88.7 crore a year ago. Its cables and wires business revenue grew 57%, outpacing Polycab (38%) and Havells (27%). Brokerage CLSA initiated coverage with an 'outperform' rating and a price target of Rs 2,850. It cited R R Kabel's entrenched distribution, influencer engagement, export leadership and integrated manufacturing as key moats. CLSA also said Project RRise provides a clear roadmap for growth, expecting revenue and PAT CAGRs of 18% and 24% respectively over FY26-30.
The Indian Opinion
R R Kabel's stellar Q1 results and CLSA's bullish initiation have pushed the stock to new highs. Yet, the market may be overreacting: the 57% revenue growth in cables came on a relatively small base, and competition from larger peers is fierce. The real test will be whether the company can sustain this pace and meet CLSA's ambitious CAGR targets without margin erosion.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
