RRKABEL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | RRKABEL | Market Cap | 17,769 Cr. | Current Price | 1,571 ₹ | High / Low | 1,651 ₹ |
| Stock P/E | 35.5 | Book Value | 227 ₹ | Dividend Yield | 0.38 % | ROCE | 28.0 % |
| ROE | 21.3 % | Face Value | 5.00 ₹ | DMA 50 | 1,439 ₹ | DMA 200 | 1,389 ₹ |
| Chg in FII Hold | 0.70 % | Chg in DII Hold | -0.61 % | PAT Qtr | 166 Cr. | PAT Prev Qtr | 130 Cr. |
| RSI | 63.5 | MACD | 45.2 | Volume | 13,32,062 | Avg Vol 1Wk | 11,70,264 |
| Low price | 1,009 ₹ | High price | 1,651 ₹ | PEG Ratio | 0.91 | Debt to equity | 0.13 |
| 52w Index | 87.6 % | Qtr Profit Var | 30.0 % | EPS | 43.0 ₹ | Industry PE | 24.5 |
📊 RRKABEL demonstrates strong fundamentals with high ROCE (28.0%) and ROE (21.3%), supported by low debt-to-equity (0.13). EPS of ₹43.0 reflects solid earnings power, and quarterly PAT growth (+30%) highlights momentum. Valuations are premium with a P/E of 35.5 vs industry average of 24.5, though the PEG ratio of 0.91 suggests growth is fairly priced. Dividend yield remains low at 0.38%, limiting income appeal. Overall, RRKABEL is a fundamentally robust company with strong profitability and growth visibility.
💡 Ideal Entry Price Zone: ₹1,420 – ₹1,460 (near DMA 200 and valuation comfort).
⏳ Exit Strategy / Holding Period: Long-term investors can hold for 3–5 years. Partial profit booking is advisable near ₹1,630–₹1,650 (recent highs). Stop-loss can be considered around ₹1,380 to manage downside risk.
✅ Positive
- Strong ROCE (28.0%) and ROE (21.3%).
- Low debt-to-equity ratio (0.13) ensures financial stability.
- EPS of ₹43.0 supports valuation comfort.
- Quarterly PAT growth (+30%) shows earnings momentum.
- FII holdings increased (+0.70%), indicating institutional confidence.
⚠️ Limitation
- Premium valuation with P/E (35.5) vs industry average (24.5).
- Dividend yield is low at 0.38%.
- RSI at 63.5 indicates moderately overbought conditions.
📉 Company Negative News
- DII holdings reduced (-0.61%).
- Premium valuation limits near-term upside potential.
📈 Company Positive News
- Quarterly PAT improved (₹166 Cr vs ₹130 Cr).
- Stock delivered 87.6% gain over the past year.
- MACD positive (45.2) confirms bullish momentum.
🏭 Industry
- Industry P/E: 24.5, highlighting RRKABEL’s premium valuation.
- Sector supported by infrastructure and housing demand for cables and wires.
🔎 Conclusion
RRKABEL is a fundamentally strong company with robust profitability, low debt, and earnings momentum. Long-term investors can hold with confidence for 3–5 years. New entrants should wait for entry around ₹1,420–₹1,460 for valuation comfort. Partial profit booking near ₹1,630–₹1,650 is advisable to manage risk while retaining exposure to long-term growth.