08-05-2025
JM Financial maintains Buy on R R Kabel, revises target price to Rs 1,400
JM Financial suggests buying R R Kabel shares. The target price is now Rupees 1,400. R R Kabel's revenue increased significantly in the last quarter. The company saw growth in both domestic and export markets. Profit margins also improved. The brokerage firm anticipates continued growth due to capacity expansion. However, they reduced the target P/E multiple.
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(Disclaimer: Views and recommendations given in this section are the analysts' own and do not represent those of Please consult your financial adviser before taking any position in the stock/s mentioned.)
JM Financial has maintained a Buy call on R R Kabel with a revised target price of Rs 1,400 (Rs 1450 earlier). The current market price of R R Kabel is Rs 1203.15. The time period given by the analyst is a year when R R Kabel price can reach defined target. R R Kabel, incorporated in 1995, is a Small Cap company with a market cap of Rs 13463.59 crore, operating in the Consumer Durables sector.R R Kabel's key products/revenue segments include Electrical Appliances, Scrap, Processing Charges and Export Incentives for the year ending the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 2229.77 crore, up 24.18% from last quarter Total Income of Rs 1795.59 crore and up 25.73% from last year same quarter Total Income of Rs 1773.39 crore. The company has reported net profit after tax of Rs 127.74 crore in the latest company?s top management includes Rameshwarlal Kabra, Davar, Sabharwal, Singh Babel, Rameshwarlal Kabra, Rameshwarlal Kabra, Rameshwarlal Kabra, Chandak, Davar, Sabharwal, Singh Babel, Rameshwarlal Kabra, Rameshwarlal Kabra, Chandak. Company has B S R & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 11 crore shares Kabel delivered a strong 4Q. Revenue grew 26% YoY (5% above JM Financial estimates) on the back of solid volume traction in domestic and export markets. Growth was broad-based, aided by continued strength in the wires and cables (W&C) segment (+28% YoY) and steady momentum in the FMEG portfolio (+13% YoY). EBITDA increased 69% YoY (32% above JMFe), with margin expanding by 220bps YoY, attributable to operating leverage, savings in operational cost, and an improved product mix. Strategic focus remains on scaling up the cables business, brand visibility, and investing in manufacturing capabilities. JM Financial reduces target price to Rs 1,400 vs. Rs 1,450 earlier despite 6-7% revision in FY26/27 estimates (driven by benefits from its capacity addition plans and a revamp in its product mix towards cables) as they reduced the target P/E multiple to 32x (35x earlier) given the broader de rating in the Indian W&C space in anticipation of higher competitive intensity. The brokerage maintains a held 61.8 per cent stake in the company as of 31-Mar-2025, while FIIs owned 7.17 per cent, DIIs 14.75 per cent.
