Mid-Cap stock R R Kabel gains almost 20% in two trading sessions: 3 reasons why HSBC expects 15% more upside
Stock Market Today: Mid-Cap stock R R Kabel has gained 20% in two trading sessions post its results declared on Friday after the market close. Here are three key reasons why HSBC expects another 15% gains for the stock
The mid -Cap stock R R Kabel Share price that closed at ₹ 1015 levels on Friday however has seen sharp gains thereafter post the Q4 Results. The R R Kabel share price toched intraday highs of RS 1267.50 on the NSE which meant gains of more than 20%. The R R Kabel share price though is now trading close to ₹ 1205 levels which still means gains of close to 19%
For mid -Cap stock R R Kabel Share price , HSBC has given Target price of ₹ 1400 post Q4 results, which means gains of more than 15% from here
HSBC Securities and Capital Markets (India) Private Limited post Q4 results giving a buy ratings with revised target price have said that they continue to value R R Kabel using a Discounted Cash Flow (DCF) model . The 11% increase in their target price is driven by a 4-5% higher FY26-27 Ebitda estimates, valuation roll-over from March 2025 to June 2025, and lower working capital days assumptions. Their target price implies a FY27 estimated price to earnings multiple of 29 times
1 Strong Q4 Results performance- HSBC said that R R Kabel's revenue, Earnings before interest tax depreciation and amortisation (Ebitda) and net profit grew by 26%, 69% and 64% y-o-y, respectively and was materially above HSBC estimates and consensus
2.RR Kabel medium-term expansion strategy and strong profit growth: expectations. The Mid -Cap stock R R Kabel has announced its medium-term strategic plan with the aim to increase Ebitda by 2.5 times over FY25-28 with 19% growth in revenue (18% cable & Wires and 25% in Fast Moving Electrical Goods) and a sharp margin improvement ( about 300 basis point) highlighted HSBC
3. On a trajectory of profit growth, leading the sector: HSBC has said that Q4 results improve their confidence that R R Kabel has returned to a strong and sector-leading profit growth trajectory.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
First Published: 6 May 2025, 03:42 PM IST
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