Radico Khaitan
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Radico Khaitan is strategically transitioning towards a premium-led business model, with its Prestige & Above (P&A) segment now constituting over 53% of total volume. Management's optimistic outlook, supported by upward revisions in both volume and margin guidance for FY27, underscores the company's focus on high-margin products like Magic Moments vodka and its luxury portfolio. This shift is expected to drive revenue growth, albeit at a moderated pace of 5-7%, as the company navigates external challenges such as rising packaging costs and regulatory changes. Vista's financial outlook reflects this transition, projecting improved margins and a target price of approximately ₹5,795, indicating an expected upside of nearly 30%. The favorable macroeconomic environment in India, characterized by rising incomes and urbanization, further supports Radico's growth trajectory. However, potential headwinds include input cost inflation and regional regulatory volatility. Over the next 12-24 months, key opportunities lie in expanding the luxury portfolio and leveraging favorable liquor policies, while watchpoints include managing cost pressures and maintaining competitive positioning in a dynamic market
Why We Like This Stock
- Transition to a premium-led business model is driving significant margin expansion
- Management's bullish guidance for volume and margin growth supports Vista's financial outlook
- Favorable macroeconomic conditions in India enhance growth prospects
Things To Watch Out For
- Rising packaging costs and regulatory changes pose risks to profitability
- Potential input cost inflation could impact margins despite premiumization efforts
- Regional regulatory volatility may affect operational stability
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 4,106 | 4,843 | 6,050 | 6,199 | 7,105 |
| Profit Before Tax (Cr.) | 348 | 465 | 822 | 1,222 | 1,295 |
| PBT Margin | 8.5% | 9.6% | 1358.7% | 19.7% | 18.2% |
| Net Profit (Cr.) | 276 | 354 | 631 | 939 | 995 |
| Earnings Per Share | 19.9 | 25.5 | 45.4 | 67.6 | 71.6 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Avendus | ▲ Buy | 4,177 | 20-Apr-2026 |
| CLSA | ▲ Outperform | 4,830 | 30-Jul-2026 |
| Elara Capital | ► Accumulate | 3,500 | 01-Apr-2026 |
| ICICI Securities | ▲ Buy | 5,100 | 30-Jul-2026 |
| Jeffries | ▲ Buy | 5,200 | 30-Jul-2026 |
| Moneycontrol | ► Equalweight | nan | 30-Jul-2026 |
| Motilal Oswal | ▲ Buy | 5,000 | 29-Jul-2026 |
| Nuvama | ▲ Buy | 5,285 | 29-Jul-2026 |
Company Overview
Show Company Profile
Radico Khaitan Limited engages in the manufacture and trading of Indian made foreign liquor (IMFL) and country liquor in India, the United States, and internationally. It provides IMFL products in various categories of whisky, brandy, rum, gin, vodka, and liqueurs. The company also provides bottling services to other spirit manufacturers. It offers its products to state government, state-owned corporation, canteen stores department, private distributors, and retailers in open market. The company was formerly known as Rampur Distillery Company. Radico Khaitan Limited was founded in 1943 and is based in New Delhi, India.