R R Kabel Limited (NSE:RRKABEL) Just Released Its First-Quarter Earnings: Here's What Analysts Think

Shareholders might have noticed that R R Kabel Limited (NSE:RRKABEL) filed its quarterly result this time last week. The early response was not positive, with shares down 4.4% to ₹1,334 in the past week. Results were roughly in line with estimates, with revenues of ₹21b and statutory earnings per share of ₹7.94. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on R R Kabel after the latest results.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Following the latest results, R R Kabel's nine analysts are now forecasting revenues of ₹87.1b in 2026. This would be a notable 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 21% to ₹35.90. In the lead-up to this report, the analysts had been modelling revenues of ₹88.5b and earnings per share (EPS) of ₹36.23 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for R R Kabel

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹1,570. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic R R Kabel analyst has a price target of ₹1,820 per share, while the most pessimistic values it at ₹1,326. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of R R Kabel'shistorical trends, as the 15% annualised revenue growth to the end of 2026 is roughly in line with the 16% annual growth over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 20% per year. So it's pretty clear that R R Kabel is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that R R Kabel's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple R R Kabel analysts - going out to 2028, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for R R Kabel that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.