RR Kabel share price may see 15% upside: Prabhudas Lilladher initiates coverage with a Buy call
RR Kabel shares were listed on September 20 at a 14% premium to issue price. RR Kabel share price began trading at ₹1,179 on BSE and ₹1,180 on NSE as compared to the issue price of ₹1,035 per share. The stock has been rising since listing and is up more than 15% from the issue price.
Brokerage firm Prabhudas Lilladher initiated coverage on RR Kabel shares with a ‘Buy’ call and a target price of ₹1,407 per share, valuing at 35x FY25 earnings. The target price on RR Kabel shares implies an upside of nearly 20% upside from Thursday’s closing price. Praveen Sahay, Research Analyst at Prabhudas Lilladher Pvt Ltd believes that RR Kabel is a play on several opportunities in the Wires & Cables (W&C) segment given strong brand with diverse product portfolio, well-structured capacity expansion plans, increasing dealers /distribution network and distribution led export business.
Also Read: Tech Mahindra’s turnaround in the offing; ICICI Securities upgrades stock to Buy, raises target price Although the company has grown its FMEG portfolio inorganically, it expects to minimize losses in coming years by transitioning towards premium markets. In FMEG, too, the company has enhanced its brand presence, positioning and manufacturing capabilities to minimize losses. RR Kabel is a fastest growing player in the Wires & Cables (W&C) segment with reported revenue CAGR of around 40% in W&C versus peers of 30% over FY21-23.
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