Cable Stock Is On Fire! RR Kabel Skyrockets 13% After Strong Q4 Result, 70% Dividend; Should You Buy?

RR Kabel Stock Price: BSE 500 Cable sector stock of RR Kabel surged nearly 13.68% during Monday's intraday trade, a day after the company announced a 64% year-on-year increase in its net profit for the March quarter of the financial year 2024-25.

The company's board of directors had also recommended a 70% dividend for its eligible shareholders. RR Kabel stock's strong performance today is the reflection of investors' excitement for the scrip after its strong quarterly earnings.

RR Kabel Stock Rally During Monday's Session

RR Kabel's stock price was trading 13.49% higher at Rs 1165.95 per share on BSE on Monday at 10 am. The company scrip opened Rs 1179.80 apiece and touched an intraday high of Rs 1199.95 per share today. Its market capitalisation stood at Rs 13,161.69 crore. The stock touched a 52-week-high mark of Rs 1,903.30 per share on BSE on 27 May, 2024. RR Kabel share price is recovering from the 52-week-low mark of Rs 750.5 per share, it touched on 7 April, 2025.

RR Kabel Q4 Result FY25

RR Kabel reported a 64% year-on-year (YoY) rise in its share price to Rs 129.1 crore during the fourth quarter of the financial year 2024-25. Its Q4FY25 result was 88.3% higher than its previous quarter. Its consolidated revenue increased by 26.4% YoY to Rs 2,217.8 crore during the quarter under review. Its operating EBITDA increased 69.4% YoY to Rs 195.8 crore. Its profit after tax (PAT) margins increased by 133 basis points (bps) to 5.8%.

RR Kabel Dividend

The company had declared a final dividend of Rs 3.5 per share which is nearly 70% of its face value of Rs 5 per share. Earlier, it had announced an interim dividend of Rs 2.5 per share in October 2024. The dividend will be approved and paid within a month of the date of annual general meeting, the company said in its stock exchange filing last week.

"Recommended a Final Dividend of Rs. 3.50/- per share (i.e.@70%) on the equity shares of face value of Rs 5/- each (in addition to the Interim Dividend of Rs. 2.50/- per share, i.e., 50% declared and paid in the month of October 2024), for the financial year ended 31 March 2025, subject to the approval of the Shareholders at the ensuing Annual General Meeting (AGM) of the Company. The Final Dividend, if approved, shall be paid within 30 days from the date of AGM, subject to deduction of tax at source, as applicable," read the company stock exchange filing released on 2 May.

RR Kabel's revenue from the wire and cables segment increased 28% in Q4 FY25 compared to Q4 FY24, driven by improved demand. Its segment profit improved by 47% in Q4 FY25 compared to Q4 FY24 due to better realisation and operational efficiency.
"RR Kabel has delivered a strong performance in Q4FY25, led by robust volume growth in our wires and cables segment-driven by improved demand, favorable copper prices, and strategic capacity expansion. We remain focused on scaling up cable volumes while sustaining strong growth in wire sales," said R. Shreegopal Kabra, MD.

RR Kabel Stock Price Recommendation

Brokerage Motilal Oswal maintained a neutral rating for the stock and hinted that it may revaluate its stance on RR Kabel after its conference call scheduled for today.

"RRKABEL reported performance above estimates, led by strong demand in C&W, favorable copper prices, and operational efficiency. The FMEG segment also reported robust growth, along with a reduction in segment losses on a YoY basis. However, copper prices experienced significant volatility in the first half of Apr'25 due to global headwinds, which could adversely impact both demand and margin in the near term. Further, increasing supply in the C&W sector is estimated to intensify competition in the medium to long term," noted Motilal Oswal in its report on Monday.

"We have a Neutral rating on the stock. However, we will review our assumptions after the concall on 5 th May'25," noted the brokerage in its report.

"RR Kabel delivered an impressive Q4 performance, reporting its highest-ever revenue of ₹2,218 crores. Operating profit margin expanded from 6% to 9%, and the company posted a record PAT of ₹129 crores, marking a 63% year-on-year growth. The management also announced plans for capacity expansion, signalling a positive business outlook. Reflecting this strong performance, the market responded favourably with a 15% overnight surge in the company's share price," said Gaurav Garg, Lemonn Markets Desk.

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