By Admin 
Radico Khaitan an old and reliable name of the Indian liquor market. This is the reason why the trust of investors is always on this stock. Apart from this, now a well -known brokerage firm like Motilal Oswal also believes that in the coming time, its stock can see a jump of up to 15 percent.
How much returns have been given so far
In the last 10 years, it has given 25 times to investors and 8 times in 5 years. Radico’s performance has been the most spectacular compared to veteran rivals like United Spirits, United Breweries and Allied Blenders.
Luxury and premium segment lead
Radico Khaitan Premium is rapidly strengthening its grip in the liquor market. IMFL (Indian Made Foreign Liquor) has 8 percent market share in the prestigies & Above category. The special thing is that the company has more than 80 percent stake in the Vodka category associated with it. At the same time, the total market share in P&A Vodka is only 3 percent, which can make this segment a big opportunity for the company in the coming time.
The presence is increasing across the country
Radico has increased the number of its retail touchpoints from 75,000 to 1 lakh. On-primesies location have also been from 8,000 to 10,000. That is, the company is now registering its presence in every street. It has launched brands like Rampur, RanthamBore and Jaisalmer, which are further strengthening its luxury portfolio.
Strong financial growth
Radico’s total revenue growth from FY19 to FY25 was 15 percent. In this, P&A portfolio has given 20 percent revenue CAGR. In FY19, the company had sold 21 million cases, in FY25 it increased to 31 million cases.
Although the margin has fallen from 17 per cent to 14 per cent due to rising glass and ENA prices, the company is now focusing on inhouse production, which is expected to improve margins in future.
Relief from policies
The company’s revenue stake in states like Uttar Pradesh, Andhra Pradesh, Maharashtra, Telangana and Tamil Nadu has increased. Especially in Q4Fy25 in Andhra Pradesh, its market share increased from 10 percent to 23 percent.
At the same time, it will get a big benefit from India-UK Free Trade Agreement (FTA). With this, import duty on foreign spirits like whisky and gin will be reduced from 150 percent to 75 percent and 40 percent in the next 10 years. This will reduce the cost of Radico’s premium brands like RanthamBore, Sangam and After Dark. In FY26, the company will import Spirits worth about Rs 2,500 million, which will save Rs 750 million.
Brokerage opinion, 15 percent target
Motilal Oswal has kept a target price of 7,000 for Radico Khaitan, which is about 15 percent above the current level. He has given 60X P/E valuation on the company’s FY27 EPS.
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