R R Kabel Ltd.
NSE: RRKABELR R Kabel Ltd.: A 30-second snapshot
R R Kabel trades at ₹1,953.8, up 59.1% over the past year and within 4.65% of its 52-week high, supported by FY26 revenue crossing $1 billion and a 5-year earnings CAGR of 32.2%. The stock carries a trailing PE of 44.8 against a 5.03% profit margin and a debt-to-equity ratio of 13.09, which is the primary structural risk in an otherwise operationally improving business. RSI at 71.77 and price 40% above the 200-DMA reflect strong near-term momentum, with the nearest support cluster 26–27% below current levels.
P/E
44.8
Forward P/E
29.3
ROE
+20.8%
Debt / Equity
13.09
Profit Margin
+5.0%
Div. Yield
+0.6%
5Y ROE > 15%
2/5
5Y FCF > 0
4/5
Quality
66/100
News
6 headlines · 4 positive · 0 negative
RRKABEL: FY26 revenue surpassed $1 billion, driven by strong growth in Wires & Cables and improved margins - TradingView
TradingView
R R Kabel Reports Record FY26 Results with Final Dividend of ₹5.5 Per Share - scanx.trade
scanx.trade
R R Kabel Limited Reports Earnings Results for the Fourth Quarter and Full Year Ended March 31, 2026 - marketscreener.com
marketscreener.com
Neutral R R Kabel; target of Rs 1620: Motilal Oswal - Moneycontrol.com
Moneycontrol.com
Buy R R Kabel; target of Rs 250: Choice Institutional Equities - TradingView
TradingView
Recent context
- ·FY26 full-year results announced April 30, 2026 showed revenue crossing $1 billion with improved margins in the Wires & Cables segment; the company declared a final dividend of ₹5.5 per share.
- ·Motilal Oswal published a note on May 4, 2026 with a price target of ₹1,620, roughly 17% below the current market price, while Choice Institutional Equities published a contrasting note on May 5, 2026 — the divergence in broker assessments reflects uncertainty about the appropriate valuation at current leverage and margin levels.
- ·The stock has risen 38% over the past 3 months, placing it 4.65% below its 52-week high; RSI has moved into overbought territory (71.77), and no resistance levels have been mapped above the current price, leaving the upper boundary technically unconstrained.
Strengths
- +5-year revenue CAGR of 34.2% and earnings CAGR of 32.2% mark RRKABEL as one of the faster-compounding names in the cables and wires space, with FY26 revenue surpassing the $1 billion milestone.
- +Debt trend is classified as falling and FCF was positive in 4 of tracked years, suggesting the elevated D/E may be structural working-capital financing rather than balance-sheet deterioration — though this cannot be confirmed from available data alone.
- +Forward PE of 29.3 represents a meaningful compression from the trailing 44.8, implying the market is pricing in continued earnings growth; analyst rating of 1.33 across 12 analysts (1–5 scale, lower = more constructive) reflects a constructive consensus among covering analysts.
- +Among 6 sector peers, RRKABEL ranks 1st on ROE (20.83% vs L&T at 16.95% and CG Power at 19.56%) and 2nd on quality score (47), while its PE of 44.8 is the second-lowest in the peer group — below ABB (86.8), CGPOWER (108.5), CUMMINSIND (66.5), and BEL (51.9).
Weaknesses
- −D/E of 13.09 is the dominant structural risk: at a 5.03% profit margin, even a modest rise in borrowing costs or a revenue shortfall could disproportionately impact net earnings and debt-service capacity.
- −ROE has exceeded 15% in only 2 of tracked years, which means the current reported ROE of 20.83% lacks multi-year confirmation; the 84/100 consistency score reflects revenue and FCF patterns rather than sustained return on equity.
- −Trailing PE of 44.8 against a sub-6% profit margin creates valuation sensitivity; Motilal Oswal published a note with a target of ₹1,620, approximately 17% below the current price of ₹1,953.8, reflecting at least one named broker's view that the current price exceeds assessed fundamental value.
- −With RSI at 71.77 and the stock 40% above its 200-DMA, the nearest support levels at ₹1,429.8–₹1,400 represent a 27–28% gap from current price — quantifying the potential drawdown depth if price were to revert toward medium-term moving averages.
Open questions
- ?Does the D/E of 13.09 reflect short-term working-capital lines that cycle with order execution, or is it long-term debt that structurally loads the balance sheet — and how has interest coverage evolved over the past 3 years?
- ?The 5-year earnings CAGR of 32.2% is strong, but ROE has exceeded 15% in only 2 tracked years: is the earnings growth being driven by revenue scale at thin margins, or is there a path to margin expansion that would lift sustained ROE?
- ?With Motilal Oswal's target at ₹1,620 and current price at ₹1,953.8, what earnings growth assumptions would need to hold for the forward PE of 29.3 to be supported — and how sensitive is that multiple to a miss in the cables demand cycle?
- ?The infrastructure sector peer group (BEL, L&T, ABB, CGPOWER, CUMMINSIND) spans very different business models; does RRKABEL's cables-and-wires revenue mix make it more correlated to housing and power capex cycles than to broader infrastructure spending, and how has management guided on order book composition?
Peer comparison: Infrastructure
Ranks 2 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| RRKABEL | R R Kabel Ltd.You're viewing | 44.8 | +20.8% | 47 |
| Industry avg | across 5 peers | 69.4 | +18.3% | 40 |
| BEL | Bharat Electronics Ltd. | 51.9 | — | 57 |
| ABB | ABB India Ltd. | 86.8 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 108.5 | +19.6% | 45 |
| LT | Larsen & Toubro Ltd. | 33.4 | +16.9% | 26 |
| CUMMINSIND | Cummins India Ltd. | 66.5 | — | 24 |
Technical state
Current price
₹1,953.80
SMA 50
₹1,523.62
SMA 200
₹1,395.71
RSI (14)
71.8 (overbought)
From 52w high
-4.7%
1Y return
+59.1%
3M return
+38.0%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Risk flags
- highDebt-to-equity of 13.09 is materially elevated for a cables and wires manufacturer; at this leverage level, even modest revenue disruption or interest rate increases would compress already thin 5.03% profit margins and amplify earnings volatility.
- mediumRSI at 71.77 (overbought territory), price 28.2% above the 50-DMA (₹1,523.62) and 40% above the 200-DMA (₹1,395.71) after a 59.1% 1-year gain; nearest identified support at ₹1,429.8 is 26.8% below current price with no resistance levels mapped above.
- mediumTrailing PE of 44.8 and forward PE of 29.3 against a 5.03% profit margin leaves limited buffer for earnings disappointment; valuation re-rating risk is amplified by the high leverage profile.
- lowROE above 15% for only 2 of the tracked years, which limits confidence in the sustainability of the reported 20.83% current ROE figure; earnings CAGR of 32.2% over 5 years has not yet produced a consistent multi-year return on equity track record.
- lowPeer priceChange1Y data is unavailable for all 5 sector comparators, so the 1Y price performance ranking cannot be established; quality score of 47 places RRKABEL second among 6 peers, with BEL at 57 ranked first.
Cross-section contradictions
- 5-year revenue CAGR of 34.2% and earnings CAGR of 32.2% alongside an 84/100 consistency score and a falling debt trend signal operational improvement, yet D/E of 13.09 and ROE above 15% in only 2 of tracked years raise the question of whether current profitability metrics reflect structural earnings power or cyclical leverage-driven gains.
- News sentiment is 4 positive vs 0 negative across 6 articles around FY26 results, yet Motilal Oswal published a note with a price target of ₹1,620 — roughly 17% below the current price of ₹1,953.8 — indicating meaningful disagreement between recent price performance and at least one named broker's assessed fair value.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days