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Hidden Gem - Rishabh Instruments Ltd (CMP: ₹445 Target Price - ₹520, Rating - Buy) ( Market Cap : ₹ 1,738 Cr.)

ICICIdirect Research 10 Apr 2026 DISCLAIMER

Rishabh Instruments Limited is a leading global engineering and energy efficiency solutions provider specializing in the design, development and manufacturing of products that support electrical automation, energy measurement, industrial instrumentation, and precision die-casting. Founded in 1982, the company operates across 100+ countries, serving industrial, infrastructure, clean energy, and mobility sectors.
The company is witnessing a favourable business mix transition towards its high-margin electrical & electronics instruments segment (~80% of Consolidated revenue) which is expected to grow at ~20% CAGR with EBITDA margins exceeding ~20%. This segment benefits from rising demand for energy management systems, grid monitoring, and industrial power optimisation, driven by electrification and efficiency needs across industries.
India is expected to remain the primary growth engine, supported by strong tailwinds from industrial capex, renewable integration, and data centre expansion. The India business (~40% of Consolidated revenue ) is projected to grow at ~20% CAGR (FY25–28E), driven by increasing adoption of power quality solutions, current transformers, and energy monitoring systems. With improving operating leverage and a richer product mix, EBITDA margins are expected to expand to ~18% in FY28E from (~15-16% in FY26E).
Lumel Alucast group’s European aluminium die-casting business based in Poland, which contributes ~20-25% of Consolidated revenue faced significant challenges with elevated energy & labour costs in Europe and phase-out of legacy automotive contracts, resulting in EBITDA declining from ₹24 crore (15% EBITDA margin) in FY21 to negative -₹19 crore (-7.2% EBITDA margin) in FY25, where losses now appear to have bottomed out. Going forward, a shift towards higher-margin non-automotive and aftermarket segments is expected to drive a turnaround, with EBITDA is projected to turn positive from ₹6 crore in FY26E to ~₹12 crore by FY28E with EBITDA margin improving to (~3 % in FY26E to ~7% in FY28E)
We expect Revenue and PAT to grow at 15% and 23% CAGR over FY26-28E. We have a Buy rating on Rishab Instruments with a Target Price of ₹ 520 (based on 18x on FY28E EPS).

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