Radico Khaitan Ltd. share price target

We remain positive on the stock and maintain our BUY recommendation Target Price & Valuation: We value the stock at | 1200 i.e. 40x P/E on FY23E EPS Key triggers for future price performance: Newer capacities would ensure enough availability of grain based ENA to address Radico higher growth...

The liquor sector is witnessing emergence of newer premium price points due to higher instances of at-home liquor consumption. Fewer avenues for customer discretionary spend resulted in higher spends towards upgradation of liquor brands (that typically exhibit higher customer...

IMFL segment comprises ~80% of consolidated revenues. The rest is contributed by IMIL and bulk alcohol P&A volumes contribute 30% to the overall IMFL volumes (rest by popular)...

IMFL segment comprises ~80% of consolidated revenues. The rest is contributed by IMIL and bulk alcohol P&A; volumes contribute 30% to the overall IMFL volumes (rest by popular)...

RKL has been continuously reducing its overall net-debt from peak of ~| 950 crore to current ~| 198 crore and generated ~| 380 crore of CFO in FY21. The management also intends to outsource its bottling of popular segment volumes, which would lower its incremental investment into increasing capacity, thus improving its return ratios. Radico continues to widen its volume growth performance over other industry players while its increased brand presence in higher categories is helping it to instil longevity into Radico's premiumisation journey. We maintain our BUY rating on the stock...

Radico continues to widen its volume growth performance over other industry players. It is on the cusp of another breakthrough (post dominance of domestic vodka market volumes) with its focus on the bigger domestic P&A; whisky segment by launching more brands in the segment. Exports market (8% of revenues) and CSD (8-9% of revenue), present other opportunities to grow its premium products. The company is also expected to become debt free in a year or two. We maintain our BUY rating on the...

Newer launches to help company tap premium segments Premium variants of successful brands such as 8PM whisky (8PM platinum), Morpheus brandy (Morpheus Blue), Magic Moments (better canister packaging, Magic Moments Verve) has helped the company to explore newer segments (Prestige and Above whisky) and also tap different consumer palates. Radico is planning to launch more premium products in the whiskey segment. Launches in super-premium segments (Jaisalmer Indian Craft gin, Rampur Indian Single Malt) are expected to help the...

Upping the competitive ante; Growth + PE re-rating story Radico Khaitan (RDCK) AR highlight that it registered a healthy 12.5% volume growth in FY20 against industry growth of meager 0.5%. Premiumisation remains the key focus area and a growth driver. 11 out of 12 brands launched in last decade were in premium category. RDCK's brand portfolio is entirely organically developed. RDCK has four millionaire brands and two more in the pipe. RDCK was ranked as the no. 1 mid-cap company in Fortune India's The Next 500 viz. the most...

backdrop of Covid. Key highlights were (1) A modest volume de-growth of 10% YoY in Jun (2) 1/3rd debt reduction from Rs 3.8bn in Mar'20 to Rs 2.6bn as of Jun and (3) 740/240bps gross/EBITDA margin expansion. Over the last three years, RDCK experienced robust volume growth, price increases, premiumisation, RM tailwinds, and thus de-leveraging. RDCK's revenue/EBITDA/PAT grew at an impressive CAGR of 13/21/41% over FY17-20. Net debt declined from Rs 9.5bn in FY16, to Rs 2.6bn as of Jun-20. We remain constructive on RDCK story due to...