R R Kabel (RRKABEL IN): Buy: All round beat; Outperformance set to continue

研报英文原文证据摘录

R R Kabel (RRKABEL IN): Buy: All round beat; Outperformance set to continue

erational breakeven for the first 3100.00

time. Management targets to sustain breakeven led by premiumisation (25% of the 2025.00

portfolio is premium products), new product launches, and distribution expansion.

950.00

4) Demand outlook for key end markets – construction, industrial, and power-related 07/25 01/26 07/26

Target price: 2830.00

applications – remains robust. High: 2525.30 Low: 1167.50 Current: 2525.30

Source: LSEG IBES, HSBC estimates

Investment rationale: R R Kabel is well positioned to benefit from India’s multi-year

Sandesh Shetty*

capex and electrification cycle, in our view. Backed by sustained demand growth in Analyst, India Industrials

W&C, capacity expansion, improved product mix (higher share of cables), exports HSBC Securities and Capital Markets (India) Private

Limited

diversification, and turnaround in FMEG business, R R Kabel has consistently sandesh1.shetty@hsbc.co.in

delivered industry-leading growth, indicating market share gains with sustained +91 89 8338 6423

margin expansion resulting in c31% EPS CAGR over FY26-29e with c25% ROIC. We Puneet Gulati*, CFA

Senior Analyst, India Energy, Property & Infra

expect its superior growth to continue. Thus, we maintain a Buy rating. HSBC Securities and Capital Markets (India) Private

Maintain Buy rating; raise TP to INR2,830 (from INR1,770): We continue to value puneetgulati@hsbc.co.in

+91 82 9189 7591

R R Kabel using a DCF model, as summarised on page 5. Raised revenue and

margin forecasts, lower WACC assumption (to 11.2% from 11.3%), and a valuation

* Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

rollover result in a c60% increase in our target price to INR2,830.