Motilal Oswal has issued a buy rating on R R Kabel with a target price of ₹2,960 in its research report dated October 22, 2026. According to the brokerage's analysis, the company is transitioning toward a more cable-led portfolio, with higher-value cables and B2B/institutional demand likely to drive its next phase of growth. The recommendation is based on the company's strategic expansion and diversification initiatives.
Capacity additions are being undertaken in phases, with major high-voltage (HV) capacities scheduled for commissioning during FY27 and the full rollout expected by FY28. As reported by Motilal Oswal, the commencement of commercial production at its new 12,000mtpa C&W facility in Silvassa in mid-September 2026 further supports this expansion. The company's capacity is expected to reach 18,000mtpa by December 2026, positioning it for significant growth in the cable manufacturing sector.
The company's recent acquisition of U M Cables' optical fiber and related cable business marks its entry into the communication cables segment. According to Motilal Oswal's analysis, this acquisition provides an opportunity to diversify beyond its core C&W business and capitalize on structural growth of India's optical fiber cable market. The acquisition provides access to an established manufacturing platform, enabling the company to leverage its procurement capabilities, distribution network and execution expertise to improve capacity utilization and drive operating efficiencies as volumes recover.
Motilal Oswal estimates revenue/EBITDA/PAT CAGR of approximately 25%/36%/40% over FY26-28E, with margin expansion and improving cash flows supporting a transition to being a net cash company by FY28E. As reported by the brokerage, they value RRKABEL at 35x FY28E EPS to arrive at their target price of ₹2,960. The valuation reflects confidence in the company's strategic positioning and growth trajectory in the expanding cable and communication infrastructure market.
