Radico Khaitan
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Radico Khaitan's management is optimistic about the company's trajectory, emphasizing a strategic pivot towards premiumization, particularly in the Prestige & Above (P&A) segment, which now constitutes a significant portion of its volume. This shift is expected to drive revenue growth and margin expansion, with management raising guidance for both volume and EBITDA margins for FY27. The company's strong balance sheet, nearing net debt-free status, provides a solid foundation for future investments and operational flexibility. Vista's financial outlook reflects this positive sentiment, forecasting a revenue growth rate of 5-7% and an expected EBITDA margin expansion of 125 basis points, supported by effective capital allocation and brand strength. However, the company faces challenges from rising packaging costs and regulatory volatility, particularly in key markets. Overall, the industry context remains favorable, with improving pricing power and steady demand for alcoholic beverages. Over the next 12-24 months, key opportunities include expanding the luxury portfolio and leveraging digital transformation, while watchpoints include commodity price volatility and potential regulatory changes in various states
Why We Like This Stock
- Management's focus on premiumization is driving significant growth in the high-margin Prestige & Above segment
- The company's transition to a net debt-free status enhances financial flexibility for future investments
- Improving pricing power and steady demand in the industry support a favorable revenue outlook
Things To Watch Out For
- Rising packaging costs and glass shortages are expected to pressure margins
- Regulatory volatility in key states could impact operational performance
- Moderating revenue growth rates indicate potential market saturation risks
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 4,106 | 4,843 | 6,050 | 6,204 | 6,906 |
| Profit Before Tax (Cr.) | 348 | 465 | 822 | 994 | 1,117 |
| PBT Margin | 8.5% | 9.6% | 13.6% | 16.0% | 16.2% |
| Net Profit (Cr.) | 276 | 354 | 631 | 764 | 859 |
| Earnings Per Share | 19.9 | 25.5 | 45.4 | 55.0 | 61.8 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Jeffries | ▲ Buy | 5,200 | 18-Aug-2026 |
| CLSA | ▲ Outperform | 4,830 | 30-Jul-2026 |
| ICICI Securities | ▲ Buy | 5,100 | 30-Jul-2026 |
| Investec | ▲ Buy | 4,636 | 30-Jul-2026 |
| Moneycontrol | ► Equalweight | nan | 30-Jul-2026 |
| Motilal Oswal | ▲ Buy | 5,000 | 29-Jul-2026 |
| Nuvama | ▲ Buy | 5,285 | 29-Jul-2026 |
| Elara Capital | ► Accumulate | 3,500 | 01-Apr-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.