Stock To Buy: Electricals Stock Gained 33% In 90-Days, PL Upgrades Rating

Leading brokerage firm Prabhudas Lilladher has assigned buy call to mid-cap electrical sector stock R R Kabel Ltd with target price of Rs 1872 apiece. Last trading price of R R Kabel share on BSE is Rs 1587.45 apiece with intraday gain of 0.51%.

R R Kabel shares declined 2.42% in last 1-week and soared 33% in last 3-months. The company on November 6, 2023 declared an interim dividend of Rs 3/- per share and shares traded ex-dividend on November 17, 2023. Check details below:

R R Kabel Stock Performance & Return: The stock's 52-week high price is Rs 1822.20 apiece and 52-week low price is Rs 1137.60 apiece, respectively. The company has a market capitalisation of Rs 17,909.41 crore. R R Kabel shares declined 4.67% in last 2-weeks and fell 4.77% in last 1-month. In last 3-months, R R Kabel shares jumped 33%.

Valuation: According to Prabhudas Lilladher, "We upward revise our FY25E/FY26E earnings estimate by 1.2%/4.0% and maintain 'Buy' rating, as we value the stock at 35x FY26 EPS to arrive at revised TP of Rs1,872 (earlier Rs 1,800)."
We believe RR Kabel continue to benefit on account of 1) strong brand with diverse product portfolio 2) well-structured capacity expansion plans, 3) increasing dealers /distribution network and 4) distribution led export business. We estimate Revenue/EBITDA/PAT CAGR of 21.7%/40.9%/46.4% over FY23-26E. Maintain 'Buy', added the analyst.

R R Kabel About: R R Kabel is available globally with its wires & cables products certified to BASEC(UK), UL(USA), CSA(Canada), VDE(Germany), TUV Rheinland (Germany), & more and compliant to REACH (Registration Evaluation Authorization of Chemical Substances) and RoHS (Restriction of Hazardous Substances) ensuring it adheres to global standards of quality and safety.

Disclaimer: The stock has been picked from the brokerage report of Prabhudas Lilladher. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.