Mid-Cap stock R R Kabel gains almost 20% in two trading sessions: 3 reasons why HSBC expects 15% more upside

Stock Market Today: Mid-Cap stock R R Kabel has gained 20% in two trading sessions post its results declared on Friday after the market close. Here are three key reasons why HSBC expects another 15% gains for the stock

R R Kabel Share price movement

The mid -Cap stock R R Kabel Share price that closed at ₹1015 levels on Friday however has seen sharp gains thereafter post the Q4 Results. The R R Kabel share price toched intraday highs of RS 1267.50 on the NSE which meant gains of more than 20%. The R R Kabel share price though is now trading close to ₹1205 levels which still means gains of close to 19%

R R Kabel Share price- 3 key reasons why HSBC expects another 15% gains

For mid -Cap stock R R Kabel Share price , HSBC has given Target price of ₹1400 post Q4 results, which means gains of more than 15% from here

HSBC Securities and Capital Markets (India) Private Limited post Q4 results giving a buy ratings with revised target price have said that they continue to value R R Kabel using a Discounted Cash Flow (DCF) model . The 11% increase in their target price is driven by a 4-5% higher FY26-27 Ebitda estimates, valuation roll-over from March 2025 to June 2025, and lower working capital days assumptions. Their target price implies a FY27 estimated price to earnings multiple of 29 times

1 Strong Q4 Results performance- HSBC said that R R Kabel’s revenue, Earnings before interest tax depreciation and amortisation (Ebitda) and net profit grew by 26%, 69% and 64% y-o-y, respectively and was materially above HSBC estimates and consensus

2.RR Kabel medium-term expansion strategy and strong profit growth: expectations. The Mid -Cap stock R R Kabel has announced its medium-term strategic plan with the aim to increase Ebitda by 2.5 times over FY25-28 with 19% growth in revenue (18% cable & Wires and 25% in Fast Moving Electrical Goods) and a sharp margin improvement ( about 300 basis point) highlighted HSBC

3. On a trajectory of profit growth, leading the sector: HSBC has said that Q4 results improve their confidence that R R Kabel has returned to a strong and sector-leading profit growth trajectory.

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