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Check Before You Invest : RR Kabel Ltd

BSE: 543981 NSE: RRKABEL ISIN: INE777K01022
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Cable

Snapshot

Q.1 Which industry/sub-sector does RR Kabel Ltd belong to?
RR Kabel Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Cable segment.
Q.2 Is RR Kabel Ltd a good quality company?
RR Kabel Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is RR Kabel Ltd undervalued or overvalued?
RR Kabel Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is RR Kabel Ltd a good buy now?
RR Kabel Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of RR Kabel Ltd?
RR Kabel Ltd revenue growth is 15.5% for FY-2025 , which is below its 5 year CAGR of 25.2% , indicating slower growth.
Q.2 Gross Profit margin of RR Kabel Ltd?
RR Kabel Ltd Gross profit margin which is the profit after deduction of direct costs, is 6% for FY-2025 , which is below its 5 year median of 6.8% , indicating decreasing margins.
Q.3 Operating Profit Margin of RR Kabel Ltd?
RR Kabel Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.39% for FY-2025 , which is below its 5 year median of 6.94% indicating decreasing margins.
Q.4 Net Profit Margin of RR Kabel Ltd?
RR Kabel Ltd Net Profit Margin is 4.06% for FY-2025 , is below with its 5 year median of 4.5%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 6 6.8
Operating Profit Margin 6.39 6.94
Net Profit Margin 4.06 4.5
Q.5 Return on Asset of RR Kabel Ltd?
RR Kabel Ltd Return on Asset is 9.71%, which is in line with its 5 year historical median of 9.71%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of RR Kabel Ltd?
RR Kabel Ltd Return on equity is 15.6% for FY-2025 , which is below its historical median of 21.05%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of RR Kabel Ltd?
RR Kabel Ltd Return on capital employed is 20.86% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of RR Kabel Ltd?
RR Kabel Ltd Cash conversion cycle is 47 days, below its historical median of 63 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 2.49 2.49
ROE 15.6 21.05
ROCE 20.86 18.4
Cash Conversion Cycle 47 days 63 days
Q.9 Debt to Equity ratio of RR Kabel Ltd?
RR Kabel Ltd Debt-to-Equity ratio is 0.10 , which is lower with the industry average of 0.56 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of RR Kabel Ltd?
RR Kabel Ltd Debt to cash flow from operations is 0.45 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of RR Kabel Ltd?
Promoters hold 61.65% of the RR Kabel Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of RR Kabel Ltd vs industry peers?
RR Kabel Ltd revenue CAGR is 25.24% , compared to the industry median CAGR of 5.79% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 7,618.2 150.6
Gross Profit 457.1 8.1
Operating Profit 487 12.2
Net Profit 310 4
Operating Efficiency
Current Level Industry Median
Asset Turnover 2.49 1.18
ROE 15.6 9.33
ROCE 20.86 13.25
Cash Conversion Cycle (days) 47.29 90

Valuation & price assessment

Q.1 Stock return of RR Kabel Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 46.52% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - - 46.5%
Q.3 Valuation ratios of RR Kabel Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 36.89 52.50 36.89
Price to Book 6.75 7.13 2.40
Price to Sales 1.84 2.08 1.25
EV to EBITDA 21.84 30.24 12.04

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