RRKABEL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.1

Html

Copy

📊 Fundamental Analysis Report

• Stock Code: RRKABEL
• Market Cap: ₹15,954 Cr
• Current Price: ₹1,411
• 52W High/Low: ₹1,612 / ₹750
• EPS: ₹29.6
• Stock P/E: 47.7 vs Industry P/E: 24.5 ❗
• PEG Ratio: 3.52 ❗ (Overvalued vs Growth)
• Book Value: ₹190 | P/B Ratio: ~7.43 ❗
• ROE: 15.2% | ROCE: 19.7% 🔶
• Debt to Equity: 0.14 🟢 (Low Leverage)
• Dividend Yield: 0.43% 🚫
• Quarterly PAT: ₹88.8 Cr (↓30.6%)
• RSI: 71.6 | MACD: 32.8 📈

✅ Positive

• Strong ROE and ROCE reflect solid profitability and efficient capital use.
• Low debt-to-equity ratio supports financial stability and growth capacity.
• Quarterly profit variation of 38.9% YoY indicates healthy earnings momentum.
• Price trading above DMA 50 and 200 confirms bullish technical trend.

⚠️ Limitation

• High P/E and PEG ratios suggest valuation is stretched relative to growth.
• P/B ratio above 7 may deter value-focused investors.
• RSI above 70 signals overbought territory, caution for short-term entry.
• FII holding declined by 0.39%, indicating cautious foreign sentiment.

📉 Company Negative News

• Sequential drop in PAT from ₹128 Cr to ₹88.8 Cr.

📈 Company Positive News

• Strong YoY profit growth and consistent margin performance.
• DII holding increased by 0.25%, reflecting domestic institutional confidence.
• Stock has delivered 76.6% return over the past year, indicating strong investor interest.

🏦 Industry

• RRKABEL operates in the electricals and cable manufacturing sector.
• Industry P/E of 24.5 is significantly lower, suggesting RRKABEL trades at a premium.
• Sector benefits from infrastructure growth, electrification, and rising consumer demand.

🧭 Conclusion

• Entry Zone: ₹1,280–₹1,340 (near DMA 50 and RSI neutral)
• Long-Term View: Strong fundamentals and sector tailwinds make RRKABEL a promising long-term hold. Accumulate on dips with valuation caution.