R R Kabel Surges 20% in Two Days: HSBC Sees 15% More Upside-Here’s Why

Image Source: Economic Times

R R Kabel shares have soared nearly 20% in just two trading sessions, fueled by a stellar Q4 performance and bullish outlook from top brokerages. HSBC expects another 15% upside, citing three key reasons:

Margin Recovery: HSBC projects EBITDA margins to rebound to 8.2% by FY27, driven by improved operational efficiency and a sharp reduction in losses from the fast-moving electrical goods (FMEG) segment.

Strong Revenue Growth: The company’s wire and cables (W&C) business is set to benefit from rising demand in both domestic and export markets, with revenue and EPS CAGRs forecast at 18% and 46% through FY27.

Capacity Expansion: Planned investments of ₹12 billion over the next three years will boost capacity and drive incremental revenues, positioning R R Kabel ahead of peers.

Source: Moneycontrol, The Economic Times, Corner Office Journal