RR Kabel shares jump 6% after Q2 profit more than doubles
RR Kabel jumped 6% to Rs 1,488.5 in Tuesday's trade on BSE after the firm's consolidated profit increased to Rs 74.1 crore in the July-September quarter, compared with Rs 35 crore a year earlier.
Meanwhile, the company's revenue from operations surged 17.7% to Rs 1,609.7 crore in Q2 FY24 as compared to Rs 1,367.2 crore in Q2 FY23.
The EBITDA in the quarter under review rose 92.7% to Rs 121.1 crore from Rs 62.8 crore in the same quarter last year. The margin was up to 7.5% in the June-September period as against 4.6% in the same quarter a year ago.
«Throughout the past six months, RR Kabel has demonstrated a promising performance, marked by strong growth in our sales volume.
This has been underpinned by the thriving real estate sector, robust infrastructure development, and a flourishing export market,» Shreegopal Kabra, MD of RR Kabel, said.
At 10.51 a.m., the scrip was trading 3.5% higher at Rs 1453 on BSE. From its 52-week high of Rs 1,524, the stock is trading nearly 5% lower.
As per Trendlyne data, the average target price of RR Kabel is Rs 1,602, which shows an upside potential of 10% from the current market prices.
The consensus recommendation from three analysts for the stock is a 'Strong Buy'.
Technically, the stock's day RSI (14) is at 63.8. The RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed.
Shares of RR Kabel are also trading higher than the 5-day, 10-day, 20-day, and 30-day simple moving averages (SMAs).
RRK is one of the leading companies in India’s consumer electrical industry (comprising wires and cables and FMEG) and has an operating history of over 23 years in the country. RRK is the fifth largest player in the branded wires and cables market in India,
