Check Before You Invest : RR Kabel Ltd

Q: 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: Is RR Kabel Ltd a good quality company?

RR Kabel Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is RR Kabel Ltd undervalued or overvalued?

RR Kabel Ltd appears Fair, as its key valuation ratios are in line with their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 45.12, Historic Median: 50.86. Price to Book, Current: 8.57, Historic Median: 7.19. Price to Sales, Current: 2.26, Historic Median: 2.09. EV to EBITDA, Current: 26.31, Historic Median: 29.26

Q: Is RR Kabel Ltd a good buy now?

RR Kabel Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: 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 25.24%, indicating slower growth.

Q: 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: 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: Net Profit Margin of RR Kabel Ltd?

RR Kabel Ltd Net Profit Margin is 4.06% for FY-2025, is below its 5-year median of 4.5%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 6, Historic Median: 6.8. Operating Profit Margin (%), Current: 6.39, Historic Median: 6.94. Net Profit Margin (%), Current: 4.06, Historic Median: 4.5

Q: 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: 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 5-year historical median of 18.4%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Check Before You Invest : RR Kabel Ltd

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 multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

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.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	45.12	50.86
Price to Book	8.57	7.19
Price to Sales	2.26	2.09
EV to EBITDA	26.31	29.26

Q.4 Is RR Kabel Ltd a good buy now?

RR Kabel Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

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 25.24%, 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 its 5-year median of 4.5%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	6	6.8
Operating Profit Margin (%)	6.39	6.94
Net Profit Margin (%)	4.06	4.5

B: Does the business utilize capital efficiently?

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 capital employed (ROCE) of RR Kabel Ltd?

RR Kabel Ltd Return on capital employed is 20.86% for FY-2025, which is above its 5-year historical median of 18.4%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of RR Kabel Ltd?

RR Kabel Ltd Return on equity is 15.6% for FY-2025, which is below its 5-year historical median of 21.05%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of RR Kabel Ltd?

RR Kabel Ltd Cash conversion cycle is 47 days, below its 5-year historical median of 63 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	2.49	2.49
ROE (%)	15.6	21.05
ROCE (%)	20.86	18.4
Cash Conversion Cycle	47 days	63 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of RR Kabel Ltd?

RR Kabel Ltd Debt-to-Equity ratio is 0.10, which is lower the industry average of 0.52, 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

D: Promoter shareholding and pledge status of RR Kabel Ltd?

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)

E: How does RR Kabel Ltd performance compare with that of its Peers?

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 4.57%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	15.5	4.6
Gross Profit Growth (%)	1.7	21.7
Operating Profit Growth (%)	5.4	18.6
Net Profit Growth (%)	4.4	28.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	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 49.17% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	49.2%

Q.2 Valuation ratios of RR Kabel Ltd vs historical?

The current P/E ratio of 45.12 is lower than its historical median of 50.86, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	45.12	50.86	28.85
Price to Book	8.57	7.19	2.59
Price to Sales	2.26	2.09	1.29
EV to EBITDA	26.31	29.26	12.65

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Check Before You Invest : RR Kabel Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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