DINESH

Radico Khaitan

Industry: Breweries
Latest CMP 4,650
Today's Change ▼ -0.54%
52-Week High / Low 4,675 | 2,536
Price Date: 14-Aug-2026
Recommendation Buy
Target Price 6,202
Expected Upside 15.5%
Forecast Horizon 2 Years
Historical CAGR 18.3%
1,000 Invested 15-Aug-2006
Today's Value 28,986
Investment Period 20 Years

Stock Snapshot

Post Results Return
+10.5%
Positive Re-rating
1-Year Target Price
6,013
2-Year Target Price
6,202
52-Week High / Low
4,675 / 2,536
20-Day Return
+12.8%
Market Cap (Cr.)
64,588
Current PE
91.2
P/BV Ratio
18.9
Dividend Yield
0.2%
Industry PE
44.1

Price Performance

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

Balance Sheet Strength
Conservatively Financed
Market Share
Stable
Industry Outlook
Improving
Analyst View
Strong Buy
Dividend History
Consistent
FII Holdings
Increasing

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
Consensus Recommendation ▲ Strong Buy
Consensus Target 5,083
Coverage 8 Analysts
Analysts' Viewpoint
Radico Khaitan's emphasis on premiumisation, particularly through its Prestige & Above segment and luxury brands like Rampur and Jaisalmer, underpins analysts' positive outlook. The company's strong balance sheet, with a target to be net debt-free by Q2FY27, enhances its financial flexibility for growth initiatives. However, challenges such as regulatory risks in key states and input cost volatility, especially in packaging materials, pose potential headwinds. Future catalysts include the launch of a tequila brand and potential regulatory changes in Tamil Nadu.

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.