Brokerage Radar: Why Are Citi Positive on RR Kabel and Elara Bullish on Hyundai Motor India?
RR Kabel: Citi Maintains ‘Accumulate’ With ₹2,650 Target
Citi has reiterated its Accumulate rating on RR Kabel with a target price of ₹2,650, highlighting resilient demand trends and improving profitability prospects.
According to the brokerage, export business faced temporary disruptions, but shipments have rebounded significantly over the last three to four weeks, reinforcing confidence in the company’s outlook.
Management continues to expect double-digit volume growth for both the first quarter and FY27, supported by healthy domestic demand and improving export momentum.
Key Positives for RR Kabel
- ✅ Citi Target Price: ₹2,650
- ✅ Recommendation: Accumulate
- ✅ Double-digit volume growth guidance maintained for FY27.
- ✅ Export demand has recovered sharply in recent weeks.
- ✅ Operating leverage expected to improve margins.
- ✅ FMEG segment likely to achieve breakeven in FY27.
- ✅ Fans business and pricing initiatives expected to support earnings.
Hyundai Motor India: Elara Initiates Buy With ₹2,390 Target
Elara Capital has initiated coverage on Hyundai Motor India with a Buy recommendation and a target price of ₹2,390, citing multiple long-term growth catalysts.
The brokerage believes Hyundai’s market share decline to 12.5% in FY26 is likely to bottom out in FY27 before recovering to around 12.9% by FY28 as new launches and capacity expansion gain traction.
Hyundai plans to introduce two new models in FY27 and a total of 26 launches, including seven all-new nameplates, by FY30.
Growth Drivers for Hyundai Motor India
| Metric | Elara View |
|---|---|
| Rating | Buy |
| Target Price | ₹2,390 |
| FY27 New Models | 2 |
| Total Planned Launches by FY30 | 26 models |
| Production Capacity by FY30 | 1.14 million units |
| Export Target | 30% of production |
| Domestic Volume Growth | 6.5% (FY27), 10.5% (FY28) |
Why Elara Is Optimistic
Expansion at the Talegaon manufacturing facility is expected to significantly boost Hyundai’s production capacity over the next few years.
The brokerage also believes that the implementation of the 8th Pay Commission could provide an incremental demand boost, given that government employees account for an estimated 16% of Hyundai’s revenues.
Combined with an aggressive product pipeline and export ambitions, these initiatives could support earnings growth over the medium term.
Investor Takeaway
Brokerage commentary remains constructive on both companies, albeit for different reasons. Citi expects RR Kabel to benefit from resilient demand, export recovery and improving operating leverage, while Elara sees Hyundai Motor India gaining from new model launches, capacity expansion and export growth. Investors should monitor execution, competitive dynamics and broader economic conditions before making investment decisions. Read more market insights at Indian-Share-Tips.com, a SEBI Registered Advisory Services platform.
SEBI Disclaimer: This article is for informational purposes only and should not be construed as investment advice or a recommendation to buy or sell securities. Investors should conduct their own research and consult a SEBI-registered investment adviser before making investment decisions.
