RR Kabel stock jumps over 10% to hit record high as profit more than doubles in Q2

livemint.com:

RR Kabel hit their record high in intra-day deals on Tuesday after the company's net profit more than doubled in the September quarter of FY24 (Q2FY24). The stock rallied as much as 10.4 percent to its all-time high of ₹1,550.00 in intra-day deals on Tuesday. The RR Kabel stock was listed on the exchanges on September 20 at ₹1,180, a 14 percent premium over the issue price of ₹1,035.

Since its listing, RR Kabel stock has gained over 31 percent. Meanwhile, it has jumped almost 50 percent from its IPO price. It has already gained 13 percent in November so far after a 3 percent fall in October.

The firm's consolidated net profit surged 112 percent to ₹74.1 crore in the July-September quarter, compared with ₹35 crore a year earlier. Meanwhile, its revenue from operations rose 17.7 percent to ₹1,609.7 crore in Q2FY24 as compared to ₹1,367.2 crore in Q2FY23. EBITDA for the quarter under review also soared 92.7 percent to ₹121.1 crore from ₹62.8 crore in the same quarter last year.

The margin also improved 293 bps to 7.5 percent in the June-September period as against 4.6 percent in the same quarter a year ago. The wires and cables segment, which consists of 90 percent of the revenue mix of the company, rose to ₹1,450.38 crore from ₹1.218.45 crore in the previous year. "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," Managing Director Shreegopal Kabra said in a statement. Last month, domestic brokerage house JM Financial had initiated coverage on the wire and cable manufacturer with a ‘buy’ call. The brokerage is bullish