📌 At a Glance
Ram Ratna Wires Ltd (RRWL) just closed FY25 with 23% revenue growth, 31% EBITDA growth, and 30% jump in PBT. Q4 was even juicier: revenue up 19.1% YoY and PBT up 26.6%. PAT dipped due to a tax adjustment, not performance. Add in copper tubes, BLDC motors, HVLS fans, and an expanding global footprint, and you’ve got an underrated electricals multibagger in the making.
🏢 About the Company
- Name: Ram Ratna Wires Ltd (RRWL)
- Founded: 1992
- Group: Part of RR Global
- Headquarters: Mumbai, Maharashtra
- Main Products: Super enameled copper wires, copper tubes, BLDC motors, hub motors, HVLS fans
- Brands: RR Shramik
- Markets: Domestic & global — growing presence in B2B industrial & OEM space
🧑💼 Key Managerial Personnel (KMP)
- Managing Director: Shri Mahendrakumar Kabra
- AGM & Company Secretary: Saurabh Gupta
📊 Financials – Q4 & FY25 (Consolidated)
| Particulars | Q4 FY25 | Q4 FY24 | YoY | FY25 | FY24 | YoY |
|---|---|---|---|---|---|---|
| Revenue from Ops | ₹956.7 Cr | ₹803.4 Cr | 19.1% | ₹3,676.7 Cr | ₹2,983.2 Cr | 23.2% |
| EBITDA | ₹45.3 Cr | ₹36.8 Cr | 23.3% | ₹156.3 Cr | ₹119.0 Cr | 31.4% |
| EBITDA Margin | 4.7% | 4.6% | ↑ | 4.3% | 4.0% | ↑ |
| PBT | ₹29.6 Cr | ₹23.4 Cr | 26.6% | ₹97.2 Cr | ₹74.6 Cr | 30.2% |
| PAT | ₹18.7 Cr | ₹19.4 Cr | -3.8% | ₹70.2 Cr | ₹54.6 Cr | 28.5% |
| PAT Margin | 2.0% | 2.4% | ↓ | 1.9% | 1.8% | ↑ |
🧠 Note: PAT fell in Q4 due to higher tax expenses, not weaker ops.
💰 Forward-Looking Fair Value (FV) Calculation
- EPS FY25 (Est.): ₹22
- Industry P/E (Specialty wires & electricals): ~25x
- Fair Value Estimate: ₹22 × 25 = ₹550
- CMP: ₹676
- Conclusion: Fairly valued – but expansion into BLDC, copper tubes, and foils could spark rerating.
🧵 Product & Segment Outlook
🧲 Super Enameled Copper Wires (Core Biz)
- Continues to anchor growth
- Strong demand from transformer and motor OEMs
- Stable margins despite copper volatility
🔁 Copper Tubes
- Growth engine being fired up
- New Bhiwadi plant coming online
- Will cater to HVAC, refrigeration, and renewable sectors
⚙️ BLDC Motors & HVLS Fans
- Early innings but strategic expansion
- Tapping into energy-efficient applications across residential, commercial, and industrial verticals
⚡ Copper Foils – The Next Bet
- Exploring forward integration into high-margin segment
- Huge demand in EV batteries, solar panels, and electronics
🧾 EduInvesting Take
Ram Ratna Wires isn’t just winding copper anymore — it’s winding up a serious long-term play. FY25 showed that this isn’t a one-trick pony. With double-digit growth across P&L, margin improvement, and product diversification into BLDC motors and copper tubes, they’re building a full-stack copper ecosystem.
It’s not flashy, it’s not trending on Twitter — but it’s the kind of stock that quietly multiplies while the market chases fads.
Edu Verdict: An underrated copper compounding machine. Keep an eye — this could be the next “Polycab Lite.”
⚠️ Risks & Red Flags
- PAT margin remains slim (~2%) — scalability without margin pressure is key
- Copper price volatility could compress short-term profitability
- New verticals (BLDC, foils) still in investment phase — execution risk exists
Author: Prashant Marathe
Date: 29 May 2025
Tags: Ram Ratna Wires, RRWL FY25, Copper Wire India, BLDC Motors, Electrical Wire Stocks, FY25 Results
