⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
RRKABEL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | RRKABEL | Market Cap | 16,242 Cr. | Current Price | 1,435 ₹ | High / Low | 1,578 ₹ |
| Stock P/E | 35.1 | Book Value | 206 ₹ | Dividend Yield | 0.42 % | ROCE | 19.7 % |
| ROE | 15.2 % | Face Value | 5.00 ₹ | DMA 50 | 1,440 ₹ | DMA 200 | 1,379 ₹ |
| Chg in FII Hold | 0.22 % | Chg in DII Hold | 0.07 % | PAT Qtr | 130 Cr. | PAT Prev Qtr | 116 Cr. |
| RSI | 49.2 | MACD | -11.2 | Volume | 1,23,781 | Avg Vol 1Wk | 1,66,820 |
| Low price | 750 ₹ | High price | 1,578 ₹ | PEG Ratio | 2.59 | Debt to equity | 0.17 |
| 52w Index | 82.7 % | Qtr Profit Var | 91.1 % | EPS | 39.7 ₹ | Industry PE | 19.2 |
📊 Core Financials
- Revenue Growth: Quarterly PAT rose from ₹116 Cr to ₹130 Cr (+91.1% YoY), showing strong growth momentum.
- Profit Margins: Healthy margins supported by scale efficiencies in cables and wires.
- Debt Ratios: Very low debt-to-equity (0.17), indicating strong financial stability.
- Cash Flows: Positive operating cash flows, aided by strong demand in infrastructure and housing sectors.
- Return Metrics: ROCE at 19.7% and ROE at 15.2% → solid capital efficiency.
💹 Valuation Indicators
- P/E Ratio: 35.1 vs Industry PE of 19.2 → premium valuation.
- P/B Ratio: ~6.96 (Price ₹1,435 / Book Value ₹206) → relatively high.
- PEG Ratio: 2.59 → suggests growth is priced at a premium.
- Intrinsic Value: Current price moderately above fair value, limiting near-term upside.
🏢 Business Model & Competitive Advantage
- RR Kabel operates in cables, wires, and FMEG (fans, lighting, appliances).
- Competitive advantage lies in brand strength, diversified product portfolio, and expanding distribution network.
- Low leverage and consistent profitability strengthen overall health.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between ₹1,350 – ₹1,400 (near DMA200 support).
- Long-Term Holding: Strong fundamentals and growth prospects make it a solid long-term play, though valuations are slightly stretched.
✅ Positive
- Low debt-to-equity (0.17).
- Strong ROCE (19.7%) and ROE (15.2%).
- Quarterly PAT growth (+91.1% YoY).
- FIIs (+0.22%) and DIIs (+0.07%) increased holdings.
⚠️ Limitation
- High P/E ratio (35.1) compared to industry average.
- Premium P/B ratio (~6.96).
- PEG ratio (2.59) suggests growth is expensive.
📉 Company Negative News
- Stock trading below recent highs (₹1,578 → ₹1,435).
- MACD negative (-11.2), showing weak momentum.
📈 Company Positive News
- Strong quarterly profit growth.
- FIIs and DIIs increased holdings.
- Expanding presence in FMEG segment.
🏭 Industry
- Cables and wires industry growing with infrastructure and housing demand.
- Industry PE at 19.2, highlighting RR Kabel’s premium valuation.
🔎 Conclusion
RR Kabel is financially strong with low debt and solid return ratios. While valuations are on the higher side, strong growth in cables, wires, and FMEG segments supports long-term potential. Investors may accumulate near support levels for steady compounding, but should be mindful of premium valuations.