Small-cap company attracts buyers in weak market on robust financials; is it part of your investment portfolio?

The company has recommended a final dividend of Rs 3 per share on equity shares with a face value of Rs 5 each.

Domestic indices started today's trading session significantly lower, weighed down by losses across most sectors, with metal and information technology stocks being the hardest hit. Although the BSE Small-Cap Index also faced declines, R R Kabel Ltd, a small-cap company, drew investor attention with its impressive gains in the opening trades.

Shares of R R Kabel Ltd surged over 6 per cent today, reaching an intraday high of Rs 1,820 per share on the BSE, accompanied by a significant increase in trading volume. This rally was driven by strong buying interest following the company's robust financial performance, including the achievement of its highest-ever revenue.

Considering the performance of the company on a consolidated basis, there was a notable revenue growth of 15.66 per cent, increasing from Rs 1,516.52 crore in Q4FY23 to report a total revenue of Rs 1,754.07 crore in Q4FY24. The net profit also experienced strong growth of 21.43 per cent, reaching Rs 78.48 crore, compared to Rs 64.62 crore in the corresponding quarter of the previous year.

The company has recommended a final dividend of Rs 3 per share on equity shares with a face value of Rs 5 each. This is in addition to the interim dividend of Rs 3 per share that was declared and paid in November 2023, for the financial year ended March 31, 2024.

The company specializes in consumer electrical products for residential, commercial, industrial, and infrastructure applications, operating in two key segments including wires and cables (including house wires, industrial wires, power cables, and special cables) and fast-moving electrical goods (including fans, lighting, switches, and appliances).

Disclaimer: The article is for informational purposes only and not investment advice.