In this article we will analyze the RR Kabel share price target for 2023, 2024, 2025. 2030 and 2035 by reviewing its financials and reports of brokerage firms. The company was listed on BSE and NSE with premium of 14% on 20 September 2023. RR Kabel share were listed at Rs. 1,179 against the issue price of Rs. 1,035.
Table of Contents
Industry Overview-
India is the third-largest producer and second-largest consumer of electricity in the world. The consumer electrical industry is one of the most important aspects of the Indian economy, contributing approximately 8% of the country’s manufacturing production, approximately 1.5% to India’s GDP, and approximately 1.5% to India’s exports.
The government of India is focusing on infrastructure development and road projects in the country very consciously, so in the development of buildings, bridges, and infrastructure projects, the electrical companies will benefit, especially the wire and cable companies.
So looking at the development of the country, the RR Kabel will make a significant contribution to the Indian economy.
Company Overview-
RR Kabel was founded in 1995 by Mr. Shreegopal Rameshwarlal Kabra. RR Kabel is engaged in the electrical industry, specializing in wires and cables and fast-moving electrical goods (FMEG).
The company manufactures products like “Jaipur Mahal” fans, Audie fans, Droot fans, energy-efficient LED lights (bulbs, battens, panels, and street lights of various wattages), and essential appliances like Ardent and Calid in the FMEG sector.
The company operates through two integrated manufacturing units in India: 1. The Waghodia unit in Gujarat 2. The Silvassa unit in Dadra and Nagar Haveli Additionally, they manage three integrated manufacturing units in Roorkee, Uttarakhand; Bengaluru, Karnataka; and Gagret, Himachal Pradesh, for FMEG products.
The company is primarily engaged in the manufacturing and supply of wire and cables. The company has an annual manufacturing capacity of 2.1 million CKM of wires and cables.
Financials-
| Market Cap | 18,912 Cr |
| P/E Ratio | 66.44% |
| Industry P/E | 48.58% |
| Debt to Equity | 0.26% |
| Dividend Yield | 0.23% |
| Return on Equity | 25.25% |
Net-profit margin-
| Year | Revenue | Profit |
|---|---|---|
| 2023 | 5,599 | 190 |
| 2022 | 4,386 | 214 |
| 2021 | 2,724 | 135 |
Share-Holding Pattern–
| Mar’24 | Dec’23 | Sep’23 | |
|---|---|---|---|
| Promoters | 62.76% | 62.76% | 62.76% |
| Retail | 23.71% | 24.92% | 24.88% |
| Mutual Funds | 6.68% | 5.88% | 5.30% |
| Foreign Institutions | 4.16% | 4.69% | 4.99% |
| Domestic Institutions | 2.69% | 1.75% | 2.07% |
RR Kabel share price target 2023
RR Kabel will use IPO money to reduce its borrowings. RR Kabel is the fifth largest player in the wire and cable market in India, representing approximately 5% market share by value as of March 31, 2023. RR Kabel is the fastest-growing consumer electrical company among its peers in India, growing at a CAGR of 43.4% between fiscal 2021 and fiscal 2023.
In FY2023, its wires and cables segment contributed to 88.56% and 89.09% of revenue from operations in fiscal 2023 and the three months ended June 30, 2023, respectively. RR Kabel is listed on BSE and NSE at the price of Rs. 1,180 with 14% premium.
RR Kabel share price target for 2023 has given below-
| Month | Minimum price | Maximum Price |
|---|---|---|
| November 2023 | 1510 | 1728 |
| December 2023 | 1554 | 1773 |
RR Kabel share price target 2024
The company has established a large distribution network of electricians, covering 2,71,264 electricians across India as of March 31, 2023.
RR Kabel has the highest number of distributors serving the extensive retail footprint in the consumer electrical industry as of March 31, 2023, and has increased retailer outlets by 3.5 times from 30,570 in fiscal 2021 to 106,626 in fiscal 2023.
RR Kabel share price target for 2023 has given below-
| Month (2024) | Minimum share price | Maximum share price |
|---|---|---|
| January 2024 | 1280 | 1490 |
| February 2024 | 1310 | 1520 |
| March 2024 | 1350 | 1580 |
| April 2024 | 1388 | 1685 |
| May 2024 | 1450 | 1698 |
| June 2024 | 1494 | 1750 |
| July 2024 | 1546 | 1838 |
| August 2024 | 1588 | 1865 |
| September 2024 | 1650 | 1925 |
| October 2024 | 1720 | 1988 |
| November 2024 | 1840 | 2005 |
| December 2024 | 1900 | 2060 |
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RR Kabel share price target 2025
RR Kabel has been involved in manufacturing its wires and cables segment since 1999 and includes a wide range of products like house wires, industrial wires, power cables, and special cables.
RR Kabel is the first company in India to introduce low-smoke, zero-halogen insulation technology in its wires and cables. This technology, in the case of a fire emergency, prevents the generation of hazardous fumes and critical chemicals that can damage the critical electrical components.
Similarly, the company also first introduced the “Unilay Core Technology,” which works as heat- and flame-resistant in electrical products.
RR Kabel share price target for 2025 has given below-
| Month (2025) | Minimum share price | Maximum share price |
|---|---|---|
| January 2025 | 1944 | 2110 |
| February 2025 | 1986 | 2190 |
| March 2025 | 2035 | 2280 |
| April 2025 | 2080 | 2355 |
| May 2025 | 2155 | 2498 |
| June 2025 | 2274 | 2550 |
| July 2025 | 2385 | 2638 |
| August 2025 | 2492 | 2765 |
| September 2025 | 2575 | 2825 |
| October 2025 | 2650 | 2888 |
| November 2025 | 2745 | 2905 |
| December 2025 | 2820 | 3060 |
RR Kabel share price target 2030
The FMEG segment contributed 11.44% and 10.91% of its revenue from operations in fiscal 2023 and the three months ended June 30, 2023, respectively.
In the last 3 years, the company has exported their products to 63 countries, including North America, Europe, and the Middle East. Revenue from outside India grew at a CAGR of 47.13% between FY 2023 and FY 2024, and it contributed 26.94% of its revenue from operations for the three-month period ended June 30, 2023.
RR Kabel share price target for 2030 has given below-
| Month (2030) | Minimum share price | Maximum share price |
|---|---|---|
| January 2030 | 5473 | 5830 |
| February 2030 | 5536 | 5920 |
| March 2030 | 5650 | 6180 |
| April 2030 | 5788 | 6255 |
| May 2030 | 5850 | 6398 |
| June 2030 | 5994 | 6450 |
| July 2030 | 6046 | 6538 |
| August 2030 | 6088 | 6665 |
| September 2030 | 6150 | 6725 |
| October 2030 | 6220 | 6888 |
| November 2030 | 6340 | 6905 |
| December 2030 | 6400 | 7060 |
RR Kabel share price target 2035
RR Kabel has scaled significantly in B2C business in the large and growing wires and cable industry. The company has an experienced and committed professional management team. Urbanization is increasing very rapidly in India, so demand for electric and electrical components will also increase.
RR Kabel share price target for 2035 has given below-
| Month (2035) | Minimum share price | Maximum share price |
|---|---|---|
| January 2035 | 12804 | 14490 |
| February 2035 | 12910 | 14520 |
| March 2035 | 13003 | 14580 |
| April 2035 | 13184 | 14655 |
| May 2035 | 13204 | 14698 |
| June 2035 | 13494 | 14750 |
| July 2035 | 13546 | 14838 |
| August 2035 | 13588 | 14865 |
| September 2035 | 13650 | 14925 |
| October 2035 | 13720 | 15088 |
| November 2035 | 13840 | 15115 |
| December 2035 | 13900 | 15360 |
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Strength of the RR Kabel
The company has an exclusive nationwide distribution network, with 3,450 distributors, 3,656 dealers, and 114,851 retailers as of June 30, 2023.
The company has a significant number of electricians.
The company achieved a CAGR of 43.4% between 2021 and 2023.
The company has diversified its business into wire and cables and into the FMEG segment.
Risks of RR Kabel
The cost of the raw material that is used in the manufacturing process is volatile. Its operations are dependent upon the price and availability of the raw materials required for the production of its wire, cables, and FMEGs.
The company has some unsecured loans, which may be subject to recall upon demand.
Conclusion
The company’s performance is closely tied to the wire and cable market. Raw material price fluctuations can affect the production of a company. Cash flow and consumer guarantees are bigger challenges for the company.
The government of India has set the goal of becoming a developed nation by 2047, so this industry will definitely play a major role in the economy of India. The share price target prediction of RR Kabel is based on the financials of the company.
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Read More…
When was RR Kabel listed on stock exchange?
RR Kabel was listed on 20 September 2023 with the price 1,180 at the 14% premium against their issue price.
Is RR Kabel a good investment?
RR Kabel is India’s fifth largest company in electrical products segment. The company has strong financials and has achieved a CAGR of 43.4% between 2021 to 2023.
What was the issue size of the RR Kabel IPO?
The issue size of the RR Kabel IPO was Rs. 1,964.01 Cr.
What is the target price of RR Kabel in 2025?
RR Kabel has strong Financials and growing with significant CAGR so target price of RR Kabel in 2025 can be minimum Rs. 1,944 and maximum Rs. 3060.
Disclaimer: I am not a SEBI-registered investment adviser or research analyst. The information shared is only for educational purposes. This is not an investment advice.