R R Kabel Stock Surges amid Strong Capex-Led Growth

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Shares of R R Kabel rallied nearly 6% amid upbeat sentiment on Motilal Oswal’s bullish note projecting a 13% upside, even as analysts flagged stretched valuations and rising working capital.

By S JHA

Mumbai, October 28, 2025 — Shares of R R Kabel Ltd rose 5.69% on Tuesday to close at ₹1,390, extending a sharp rally that has lifted the stock 43.66% over the past six months. The surge came after a series of upbeat analyst notes highlighting the company’s strong fundamentals and expansion plans.

Motilal Oswal Financial Services, in its latest report, reiterated a “Neutral” rating on the stock with a target price of ₹1,430, implying a 13% upside potential. The brokerage cited capex-led growth and integrated, scalable plant operations as key strengths.

The report noted that R R Kabel’s recent plant visit in Gujarat showcased its expanding capacity and operational efficiency. The company is investing about ₹1,200 crore to boost capacity in cables and wires (C&W), a segment where it has delivered a 13% CAGR in recent years.

On X (formerly Twitter), analysts shared contrasting views.
Eduinvesting described Q1 FY26 as a “quarterly voltage surge,” pointing out that revenue rose 14% YoY to ₹2,059 crore, while PAT stood at ₹89.8 crore. However, the post also flagged “governance shocks” and weakness in the FMEG (Fast-Moving Electrical Goods) segment.

Subrata Bhowmick, another market watcher, maintained a buy rating, highlighting Motilal Oswal’s positive stance and “capex-led growth story.”

Meanwhile, Chafa Capital offered a balanced view: “Pros — good profit growth, healthy ROE.
Cons — high P/E, increasing working capital. Overall — a growing player with solid financials, but valuation appears stretched.”

From a technical perspective, R R Kabel has shown strong momentum above its 50-day and 200-day moving averages, with consistent delivery-based volumes suggesting long-term investor interest. However, analysts caution that high valuation multiples and rising working capital could cap near-term upside.

With its strong domestic demand, expanding export footprint, and aggressive capacity additions, R R Kabel remains a key player to watch in India’s cables and wires sector, albeit one where investors may need to balance optimism with caution.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)