R R Kabel Limited

Industrials — Electrical Equipment & Parts · NSE

₹2,370.00−₹233.90 (−8.98%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by a beta above 1.3, so it swings harder than the index.

In simple words: Strong business and financial position, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of R R Kabel Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

R R Kabel Limited manufactures and sells wires and cables, and fast-moving electrical goods under the RR Signature brand name in India and internationally. It offers house wires, industrial wires, low and medium voltage power cables, solar, and special cables.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees4,040

Annual revenue₹9,587 Cr

How does it make money?

Turns over ₹9,587 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 4,040 employees supports ₹2.37 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.37 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 26.5%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 19.1% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE17.1%

What is the outlook?

16 analysts covering the stock expect revenue to grow about 17.6% and earnings to grow about 23.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+17.6%

Est. earnings growth+23.7%

Analysts16

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +73% while net margin moved +50% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+73%

Margin effect+50%

DalalBaazaar Score

71/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 44.1x is demanding — it needs sustained high growth to justify
✓ P/E is 22% below its own historical median of 56.7x — cheap by its own standards
✗ P/B of 10.41x is a steep premium to book

Quality vs. Valuation

Company Quality

79/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

61/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

44.1x

3Y Median

56.7x

39 monthly readings · mean 66.0x · range 33.5x–106.7x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 22% below its 3y median of 56.7x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 50% below the peer median of 88.8x.

vs. its own history

Cheap

56.7x median over 39 months · -22%

vs. sector peers

Cheap

88.8x median of 3 peers · -50%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

32.4x

PEG

1.18

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 6.2% to 8.7% over 3 years.
Debt is being paid down
Total debt is down 42% over 3 years.
Return on equity is rising
ROE has improved from 13.4% to 19.1%.
Return on capital is rising
ROCE has improved from 19.3% to 26.5%.
High return on capital employed
ROCE of 26.5% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.13x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Inventory building faster than salesFinancial
Inventory up 106% against revenue up 73% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 26.5% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 6.2% to 8.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 42% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 22% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 50% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

No clear risk case emerges from the available numbers — which is not the same as there being none.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 15% a year✓ 20.1% CAGR
Latest reported year was 53.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 8.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 24%✓ 26.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 2 neutral · 2 weak

Market Cap

₹26,806 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

44.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

10.41x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹53.71

Profitable

Profitable on a per-share basis

ROE

19.1%

Strong

Strong capital efficiency

ROCE

26.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.13x

Low

Conservative leverage

Revenue Growth (YoY)

53.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

128.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.46%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

29.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

8.0%

Average

Average margins

Net Margin

5.6%

Average

Average bottom-line conversion

Current Ratio

1.65

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.42

High swing

Swings more than the market in both directions

52W Range Position

65%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2572.2 / 2643.9

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

42.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5,537 Cr	₹6,518 Cr	₹7,518 Cr	₹9,587 Cr	+20.1%
EBITDA	₹345 Cr	₹508 Cr	₹525 Cr	₹836 Cr	+34.3%
EBITDA Margin	6.2%	7.8%	7.0%	8.7%	—
PAT (Net Profit)	₹190 Cr	₹298 Cr	₹312 Cr	₹492 Cr	+37.4%
EPS	₹16.83	₹26.57	₹27.57	₹43.52	+37.3%
ROE	13.4%	16.3%	14.5%	19.1%	—
ROCE	19.3%	23.7%	20.6%	26.5%	—
Total Debt	₹580 Cr	₹360 Cr	₹290 Cr	₹337 Cr	-16.6%
Free Cash Flow	₹345 Cr	₹149 Cr	₹127 Cr	₹4 Cr	-76.9%

🟢 Revenue has grown at 20.1% a year over 3 years.

🟢 EBITDA has grown at 34.3% a year over 3 years.

🟢 EBITDA Margin has risen from 6.2% to 8.7% over 3 years (+2.5 pts).

🟢 PAT (Net Profit) has grown at 37.4% a year over 3 years.

🟢 EPS has grown at 37.3% a year over 3 years.

🟢 ROE has risen from 13.4% to 19.1% over 3 years (+5.7 pts).

🟢 ROCE has risen from 19.3% to 26.5% over 3 years (+7.2 pts).

🟢 Total Debt has shrunk at 16.6% a year over 3 years.

🔴 Free Cash Flow has shrunk at 76.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,621 Cr

Total Liabilities

₹2,047 Cr

Cash & Equivalents

₹86 Cr

Operating Cash Flow

₹295 Cr

Capex

-₹291 Cr

Shareholding (proxy)

Institutional Holding

17.6%

Insider Holding

70.0%

Corporate Actions

Dividend Rate

₹11

Ex-Dividend Date

16 Jun 2026

Analyst Consensus

Recommendations

12 Buy · 1 Hold · 2 Sell

Target Price (Mean)

₹2,870.2

+21.1% vs CMP

Target Range

₹1,900 – ₹3,340

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

4 mixed2 general

R R Kabel (NSEI:RRKABEL) Stock Forecast & Analyst Predictions

Simply Wall Street, 14 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

RR Kabel Share Price Update: Price Fall and Sector View

Univest, 15 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

R R Kabel board approves proposal to acquire U M Cables’ optical fibre cable business; shares rally 72% YTD

Upstox, 25 SeptM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Cable & Wire stocks: Polycab, KEI, R R Kabel, Quadrant Future slip up to 5%

Business Standard, 13 Oct

RR Kabel Share Price Fall Streak and Valuation

Univest, 16 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

What Comes Next For R R Kabel After A 82% Gain

Simply Wall Street, 15 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability

MiddlingBusiness Quality · Risk

WeakValuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑