R R Kabel up 47% YTD, 21% in a month; Motilal stays Neutral at ₹2,020

R R Kabel shares rose 2.2 per cent on BSE, logging an intra-day high of ₹2,205.6 per share. At 10:41 AM, the stock pared some gains but remained up 1.95 per cent at ₹2,199.8 per share. In comparison, the BSE Sensex was down 0.07 per cent at 74,295.94.

 

The stock has rallied 21 per cent in a month and 47 per cent in the year-to-date period — sharply outperforming the Sensex, which fell 3.7 per cent in a month and 13.3 per cent year-to-date.

 

Motilal Oswal Financial Services has maintained a 'Neutral' rating on R R Kabel with a target price of ₹2,020 per share, noting healthy demand across key end-user segments but flagging near-term growth moderation due to the ongoing West Asia crisis. The brokerage raised its FY27 and FY28 EPS estimates by 9 per cent and 12 per cent, respectively, on higher raw material prices and better margins in FY26.

 

 

The company expects margins to remain stable, supported by effective cost pass-throughs, and remains focused on scaling its cables and export businesses through a ₹1,200 crore capital expenditure plan and expansion into higher-voltage segments. 

 

While exports have been impacted by the Middle East crisis, the company expects the impact to normalise gradually. Near-term revenue growth is expected to be largely price-led, fuelled by elevated copper and aluminium prices and subsequent price hikes.   Check - TOP GAINERS NSE | TOP LOSERS NSE

 

The FMEG segment remains in an investment phase, with the company expanding into kitchen appliances and premium product categories, and management continuing to target FMEG breakeven by FY27.

 

The cables and wires segment delivered an uptick in FY26, with Ebit margin expanding to approximately 8.9 per cent from approximately 7.4 per cent in FY25, driven by a pickup in demand and sharp increase in copper and aluminium prices — which are largely pass-through in nature. Lower Ebit losses from the FMEG business also supported overall operating performance.

 

Looking ahead, while the cables and wires segment is expected to deliver strong revenue growth — driven by copper and aluminium prices rising approximately 57 per cent and 63 per cent Y-o-Y in April-May 2026 — Motilal Oswal flagged that competitive intensity is expected to increase with the anticipated entry of UltraTech Cement into the cables and wires space by Q4FY27. 

 

The brokerage believes UltraTech is likely to have a higher share of wires in its portfolio, where gaining market share is relatively easier than in cables. Ebit margin volatility in the C&W segment remains a key monitorable going forward.  Disclaimer: The views and investment tips expressed by the analysts/brokerage are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.