The shares of one of India’s largest exporters of wires and cables rose 1.4 percent to ₹1,775.95 per share a day after the company’s promoter group entity sold a stake via the bulk deal.
On Tuesday at 10:35 a.m., R R Kabel Ltd shares were trading at ₹1,758 each, reflecting a 0.32 percent increase from the previous close. The company has a market capitalization of ₹19,814 crores.
Subject: According to BSE bulk deal data, on June 24, Ram Ratna Research and Holdings Private Limited, a promoter group entity of the company, sold 590,000 equity shares at an average price of ₹1,734.58 each, amounting to a total value of ₹102 crores.
Stock Returns: R R Kabel Ltd. shares have gained 11 percent in the last six months and 46 percent in a year.
About Company: R R Kabel Ltd is one of the leading companies in India’s consumer electrical industry (comprising wires and cables and FMEG). The company is the fourth largest player in the Indian Wires and Cables(W&C) industry by value in FY24.
RR Kabel provides consumer electrical products used for residential, commercial, industrial, and infrastructure purposes in two major segments, namely wires and cables including house wires, industrial wires, power cables, and special cables, and FMEG including fans, lighting, switches, and appliances.
The company has two manufacturing units in Waghodia, Gujarat, and Silvassa, Daman, and Diu, focusing on wires, cables, and switches, and three integrated manufacturing facilities in Roorkee, Uttarakhand; Bengaluru, Karnataka; and Gagret, Himachal Pradesh, producing FMEG products.
Financials: The company’s revenue saw a modest annual growth of 15 percent, increasing from ₹1,517 crore in Q4FY23 to ₹1,754 crore in Q4FY24. Additionally, net profit jumped by 20 percent during this period, climbing from ₹65 crore to ₹78 crore.
The company generates 88% of its revenue from wires and cables within its Product segments, while the FMEG business contributes 12%.
Written by Omkar Chitnis
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