R R Kabel Soars: Mid-Cap Stock Surges After Impressive Q4 Results
In an exciting turn of events, R R Kabel, a prominent mid-cap player in the market, has witnessed a remarkable surge of 20% in just two trading sessions. This upswing followed the release of its March quarter results, which were announced after the market closed on Friday. According to global investment firm HSBC, R R Kabel’s stock has significant potential for further growth, with an anticipated upside of 15%.
R R Kabel’s Stock Performance
On the National Stock Exchange (NSE), R R Kabel’s shares reached an impressive intraday high of ₹1,267.50, translating to a gain of over 20% from Friday’s closing price of ₹1,015. Although the stock has experienced some profit-taking and is currently trading around the ₹1,205 mark, this still reflects a robust increase of nearly 19%.
- Current Share Price: ₹1,205
- Intraday High: ₹1,267.50
- Friday’s Closing Price: ₹1,015
- Overall Gain: 20%
HSBC’s Positive Outlook on R R Kabel
HSBC has set an ambitious target price of ₹1,400 for R R Kabel, suggesting a potential increase of over 15% from its current levels. This new target reflects an 11% upward revision, driven by:
- An increase of 4-5% in FY26-27 EBITDA estimates.
- Valuation adjustments from March 2025 to June 2025.
- Revised assumptions regarding decreased working capital days.
Key Factors Behind the Projected Growth
HSBC outlines three critical reasons for its optimistic forecast regarding R R Kabel:
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Strong Q4 Financial Performance: R R Kabel reported impressive year-on-year growth figures, with revenue rising by 26%, EBITDA soaring by 69%, and net profit climbing 64%. These results exceeded both HSBC’s projections and broader market expectations.
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Strategic Medium-Term Expansion: The company has unveiled a strategic plan aimed at amplifying its EBITDA by 2.5 times between FY25-28. This plan includes a projected 19% revenue growth, with 18% from cables and wires and 25% from fast-moving electrical goods, along with substantial margin improvements.
- Profit Growth Momentum: HSBC’s analysis of the Q4 results has bolstered its confidence in R R Kabel’s return to a robust profit growth trajectory, positioning it as a leader in its sector.
Conclusion
With R R Kabel’s strong financial results and strategic vision, the stock appears poised for continued success. Investors should keep an eye on this mid-cap stock as it navigates through its growth phase, backed by HSBC’s optimistic projections. For more insights on market trends and stock performance, check out our related articles on emerging stocks and investment strategies.
