India's R R Kabel posts rise in Q4 profit on strong demand for wires and cables

R R Kabel

28/05/2024 15:12

BENGALURU, May 28 (Reuters) - India's R R Kabel  RRKA.NS  reported a 21% rise in fourth-quarter profit on Tuesday,
buoyed by strong demand in its core wires and cables segment.
    Consolidated profit climbed to 787.2 million rupees ($9.5 million) for the three months ended March 31 from 652.9
million rupees a year earlier.
    Revenue from operations rose nearly 16% to 17.54 billion rupees during the quarter.
    For further result highlights, click: [Full story]
    
    
    KEY CONTEXT
     Cable and wire companies are experiencing a surge in demand, thanks to increased needs in real estate and
infrastructure projects. This growth is being further aided as the government tries to boost the economy.
    Rivals Polycab India  POLC.NS , Havells India  HVEL.NS  and Crompton Greaves Consumer Electricals  CROP.NS  had all
seen a steady rise in its Q4 profit, aided by healthy demand.
    
    
    PEER COMPARISON
    
                                    Valuation (next 12     Estimates (next 12         Analysts' sentiment            
                                          months)               months)                                         
                          RIC       PE    EV/EBI  Price/   Revenue     Profit    Mean      # of     Stock to    Div yield
                                           TDA    Sales     growth     growth   rating*  analysts     price        (%)
                                                                                                    target**    
      R R Kabel         RRKA.NS    48.85  30.59     --        --         --     Strong      9         1.04         0.33
                                                                                  Buy                           
    Polycab India       POLC.NS    49.20  34.37    3.94     18.13      17.38      Buy       22        1.07         0.29
    Havells India       HVEL.NS    70.00  47.47    5.55     14.27      27.09     Hold       16        1.11         0.48
   Crompton Greaves     CROP.NS    41.36  27.16    2.67     12.58      31.91      Buy       32        1.01         0.77
 Consumer Electricals                                                                                           
 
    * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
    * Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the
PT
    
    
    JANUARY-MARCH STOCK PERFORMANCE
    
    
    
    -- All data from LSEG
    -- $1 = 83.1652 rupees

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January-March stock performance_RR Kabel    https://tmsnrt.rs/3UXbHsH
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 (Reporting by Ashna Teresa Britto in Bengaluru; Editing by Vijay Kishore)
 ((AshnaTeresa.Britto@thomsonreuters.com;))