RRKABEL - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

🔌 Fundamental Stock Analysis: RR Kabel Ltd (RRKABEL) Rating: 3.9

📈 Core Financial Strength

Profitability Metrics

ROCE: 19.8% and ROE: 15.2% — solid operational and equity efficiency, well above average for industrial segment.

EPS: ₹27.6 — reflects meaningful earnings output per share.

Quarterly Results

PAT Qtr: ₹129 Cr, up from ₹68.6 Cr — +64.0% QoQ growth signals strong business momentum.

Supported by margin expansion and demand uptick in B2B electrical segment.

Balance Sheet Health

Debt-to-Equity: 0.13 — minimal leverage, extremely healthy for manufacturing firm.

Dividend Yield: 0.43% — low yield indicates growth prioritization over income distribution.

💸 Valuation Overview

Metric Value Interpretation

P/E Ratio 51.9 Premium Valuation — priced richly relative to earnings

P/B Ratio ~7.31 High — reflects market optimism and brand value

PEG Ratio 3.97 Signals overvaluation vs expected growth rate

RSI / MACD RSI 50.8, MACD 18.3 Momentum neutral to mildly bullish; momentum building

DMA Status Price ₹1,390 vs DMA50 ₹1,344 / DMA200 ₹1,315 Holding above averages — technical strength

Volume: Slight dip in daily volumes may hint at short-term consolidation.

52W Index: 59.5% — trading closer to high end, limits near-term upside unless earnings surprise continues.

🧠 Business Model & Competitive Position

Industry Role: Key player in wires & cables market, powering residential, commercial and industrial segments.

Moat

Strong distribution footprint across India.

Premium product positioning and aggressive brand building (e.g. RR Kabel Home segment).

Beneficiary of increased infrastructure, electrification and real estate demand.

Risks

Rich valuation leaves little room for error.

DII reduction (–1.13%) may indicate concern over near-term pricing.

Needs sustained quarterly performance to support multiples.

📍 Entry Zone & Long-Term View

Suggested Entry Zone: ₹1,315–₹1,340 — near 200-DMA, offering lower-risk entry point.

Hold Strategy

Promising for long-term growth portfolios focused on electrification and industrial automation.

Valuation may compress in weaker quarters, so staggered entry recommended.

Ideal candidate for thematic investing in “India Infrastructure” or “Smart Homes” portfolios.

Want a quick comp against Polycab, KEI Industries, or Finolex to size up growth, pricing, and capital structure edge? I can stitch that together anytime you’re ready.

Edit in a page