The consumer electrical sector in India is witnessing significant growth, driven by rising disposable incomes and an increasing demand for convenience-driven solutions. As urbanization expands, there’s a growing adoption of energy-efficient home appliances, smart devices, and automated systems. Additionally, the wires and cables segment, crucial for electrification and infrastructure development, is seeing a surge in demand.
Companies like Crompton Greaves, Finolex Cables, RR Kabels, Polycab, and Havells are well-positioned in both electrical appliances and cables, offering a diverse portfolio that caters to the evolving needs of consumers and businesses. With a focus on innovation and quality, these stocks are poised for strong growth. As technology adoption and infrastructure development accelerate, these companies are set to benefit from India’s expanding electrical and wiring requirements, providing solid investment prospects.
Share Price
The shares of RR Kabel are currently trading at Rs. 1,273 down by 2.38% from its previous close of Rs. 1,308 as of February 03, 2025.
Recent Updates
HDFC Securities’ Upgrade and Price Target
HDFC Securities has upgraded the stock to a Buy with a target price of Rs. 1,600, reflecting an upside potential of 26% from the current market price of Rs. 1,273 This upgrade follows a relatively flat Calendar Year 2024 (CY24) for the company, where growth was not as robust. However, HDFC Securities expects the company to rebound strongly in the coming years, driven by improving operational efficiencies and a favorable market environment. The brokerage believes that despite the challenges in the past year, the company is well-positioned for a strong recovery in profitability and growth.
Growth Outlook and Rationale Behind the Upgrade
The positive outlook is supported by expectations of significant profit growth, with an 18% CAGR in revenue and a 46% CAGR in EPS projected for FY25-27. HDFC Securities highlights that the company’s performance is set to outpace its peers, and the stock’s attractive valuations make it a compelling investment at current levels. With strong growth potential ahead, HDFC Securities remains optimistic about the company’s ability to deliver solid returns.
About the Company
Incorporated in 1995, RR Kabel is a leading provider of consumer electrical products catering to residential, commercial, industrial, and infrastructure needs. The company operates in two major segments: Wires and Cables and Fast Moving Electrical Goods (FMEG). Its wires and cables
segment includes house wires, industrial wires, power cables, and special cables, holding a 40% market share of the Indian electrical industry as of FY24.
The FMEG segment offers a diverse range of products such as room heaters, water heaters, coolers, irons, modular switches, MCBs, ceiling fans, exhaust fans, and lighting solutions like bulbs, panels, streetlights, and downlights. RR Kabel’s comprehensive portfolio and strong market presence position it as a significant player in the Indian electrical products industry.
Written By: Dipangshu Kundu
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