Motilal Oswal has raised its target price on RR Kabel Ltd. to ₹3,400 from the earlier ₹2,960, representing a 21% potential upside from the current market price of ₹2,810. According to the brokerage's latest research report dated August 26, 2026, the valuation has been increased from 35 times to 40 times FY28E earnings per share. The brokerage has reiterated its 'Buy' rating on the company, reflecting confidence in its growth prospects and strategic positioning.
RR Kabel is well-positioned to significantly outgrow the industry, targeting ~25% growth in cables versus the industry growth rate of ~15%, which could increase its market share from 3.0% to 4.5%. As per Motilal Oswal's report, this growth will be primarily volume-led, supported by capacity expansion, a sharper focus on B2B cables, and improved product availability. The ongoing shift from unorganized to organized players, aided by a limited price differential, is estimated to drive substantial market share gains. The company is expanding its cables product range from 66kV to 220kV, enabling it to address higher-value applications across utilities, infrastructure, renewable energy, and industrial segments, increasing its addressable market in cables to ~95%.
Motilal Oswal estimates RR Kabel's revenue/EBITDA/PAT CAGR at approximately 25%/36%/40% over FY26-28, supporting a favorable medium-term earnings outlook. The company's ₹12 billion capex program by FY28 is expected to support a revenue opportunity of ₹50-60 billion through FY29. Significant export headroom, supported by its distribution network and efforts to expand international approvals, provides an additional growth lever for the company.
Despite the positive outlook, the brokerage has identified key risks that could impact the company's performance. These include volatility in commodity prices such as copper, aluminum, and PVC, which may lead to destocking and demand slowdown in the near term. Additionally, rising competitive intensity from new entrants in wires and external factors including geopolitical risks pose potential challenges to the company's growth trajectory.
