RR Global Group stocks dropped up to 5.5 percent after the Income Tax Department began a search operation at some of the offices and manufacturing units of the Company and its Subsidiaries.
The income tax authority initiated searches in Ram Ratna Wires Ltd and R R Kabel Ltd.
RR Global is one of India’s largest conglomerates in the electrical sector. Spread across multiple business verticals including Wires and cables, Switches, Fans, Lighting, switchgear, and appliances.
According to the exchanges of both firms, the Income Tax Department is conducting a search at some of the offices and manufacturing units of the Company and its Subsidiaries. The Company’s activities are continued as usual and have not been impacted by the search.
Ram Ratna Wires Ltd.
Ram Ratna Wires Ltd is the 2nd largest manufacturer of Winding Wire in South Asia. On Thursday trade stock declined by 4.6 percent to Rs 278.70 per share after the aforementioned news broke out.
Ram Ratna Wires Limited is engaged in the manufacturing of winding wires, mainly enamelled copper wires. The company’s product portfolio includes enamelled copper wire and strips, enamelled aluminium wires and strips, submersible winding wires, etc.
Ram Ratna Wires Ltd shares have given a return of 30 percent in the last six months and 71 percent on a year-to-date basis. The company has been able to deliver strong returns on its capital employed (21.5%) and shareholders’ fund (14.1%).
The company board has approved the expansion of the company’s footprints into value-added products in copper-clad laminates for PCBs & PCBs.
The company has a revenue Split of 88 percent from Enamelled wires and strips and the rest 12 percent from Copper tubes and pipes.
The company’s revenues increased by 22 percent year on year from Rs 619 crore in Q2FY23 to Rs 757 crore in Q2FY24, while net profit increased by 100 percent in the same period, from Rs 7 crore to Rs 14 crore.
R R Kabel Ltd.
R R Kabel Ltd is the fifth largest player in the wires & cable market in India, with a 5 percent market share. On Thursday trade stock declined by 5.5 percent to Rs 1,554.55 per share after the aforementioned news broke out.
R Kabel Limited is engaged in the business of manufacturing of consumer electrical products used for residential, commercial, industrial, and infrastructure purposes such as room heaters, water heaters, coolers and irons and switches & switchgear
R R Kabel Ltd shares have given a return of 36 percent in the last from the day of listing price on September 20th,2023.
The company exports a range of products from wires and cable products directly and through distributors in 63 countries in North America, APAC, Europe, and the Middle East. It exports most of its products under the brand ‘RR Kabel‘.
R R Kabel’s revenues increased by 17 percent year on year from Rs 1,367 crore in Q2FY23 to Rs 1,609 crore in Q2FY24, while net profit increased by 102 percent in the same period, from Rs 36 crore to Rs 73 crore.
Written by Omkar Chitnis
