The brokerage has assigned a price target of ₹2,600, indicating a potential upside of nearly 17% from current levels.
Motilal Oswal remains constructive on the cables and wires (C&W) sector, citing strong demand prospects driven by India’s infrastructure buildout, increasing electrification and the country’s ongoing energy transition.
According to the brokerage, the sector is well-positioned to sustain its outperformance as investments in power infrastructure and renewable energy continue to gather pace. It believes these structural growth drivers will support demand over the long term and provide greater earnings visibility for industry players.
Reflecting its improved outlook, Motilal Oswal has raised its earnings estimates for RR Kabel by 11% for FY27 and FY28. The brokerage expects the company to deliver a revenue CAGR of 21% between FY26 and FY28.
The upgrade is driven by expectations of stronger revenue growth, aided by ongoing capacity expansion, market share gains and margin improvement.
The bullish commentary comes days after Citi reiterated its ‘Buy’ rating on RR Kabel with a price target of ₹2,650, highlighting a sharp recovery in export demand as a key positive.
Motilal Oswal has also maintained its positive stance on sector peers Polycab India and KEI Industries, reiterating ‘Buy’ ratings on both stocks.
The brokerage said long-term demand tailwinds for the cables and wires industry remain firmly in place.
RR Kabel shares were trading over 6% higher in Thursday’s session after hitting a lifetime high of ₹2,365.
