Established in 1943, Radico Khaitan stands as a cornerstone in India’s spirits industry, renowned for its Indian Made Foreign Liquor (IMFL) offerings. Initially christened as Rampur Distillery Company, its early endeavors revolved around distillation and bottling for branded entities and military canteens. Over the decades, Radico Khaitan has evolved into a household name, symbolizing quality and tradition in the beverage landscape.
The spirits industry, both in India and globally, holds significant cultural and economic relevance, intertwining with social gatherings, celebrations, and economic trends. As consumer preferences evolve and global markets expand, companies like Radico Khaitan navigate a dynamic landscape, adapting to changing tastes and regulatory environments. Beyond financial projections, illuminating the journey towards its ambitious price target of 10k.
About Radico Khaitan
Established in 1943, Radico Khaitan, formerly known as Rampur Distillery Company, has grown into one of India’s foremost producers of Indian Made Foreign Liquor (IMFL). Initially focused on distillation and bottling for branded players and armed forces canteen stores, the company transitioned to launching its own branded IMFL products in 1997, with the iconic 8PM whisky leading the way.
With a rich history spanning over seven decades, Radico Khaitan has diversified its brand portfolio to include a wide range of spirits, including whisky, rum, gin, and vodka. Notable brands include After Dark Whisky, Jaisalmer Indian Craft Gin, Magic Moments Vodka, and Contessa Rum, among others.
Magic Moments Vodka and Morpheus Brandy stand out as market leaders in their respective categories, commanding significant market shares. The company’s commitment to innovation is evident in recent launches like Magic Moments Remix Pink Vodka, catering to evolving consumer preferences.
Operating from three distilleries in Uttar Pradesh and one in Maharashtra, along with numerous bottling units across the country, Radico Khaitan boasts a robust manufacturing infrastructure. The recent addition of a grain-based distillery in Sitapur, UP, further strengthens its production capacity and supports future growth plans.
Beyond the domestic market, Radico Khaitan has made significant inroads into international markets, exporting its premium products to over 85 countries. With a strong presence in the Defence segment and a diverse revenue mix, Radico Khaitan continues to solidify its position as a leading player in the global spirits industry.
Recent News Around Radico Khaitan
- Rampur Indian Single Malt offers seven expressions, including Select, PX Sherry, and Signature Reserve.
- It is available in over 45 countries and in 20+ travel retail locations.
- The brand has expanded its presence in 14 states across India.
- Rampur Double Cask received prestigious awards such as Gold at the New York Spirit Challenge and Barleycorn Awards in 2023.
- It also scored 92 points in the Ultimate Spirits Challenge and 94 points at the BTI Luxury Award in 2023.
- Rampur Asava was named one of the Top 10 Single Malts in the World by Wine Enthusiast in 2023.
- It received Double Gold at the Barleycorn Awards and scored 92 points at the BTI Luxury Award in the same year.
- Rampur Asava is set to launch in India in FY2025, indicating further market expansion.
Radico Khaitan Q3 Fy2024 Key Points And Summary:
- Radico Khaitan’s total IMFL volume increased by 3.7% to 7.25 million cases in Q3 FY2024.
- Prestige & Above brands volume surged by 20.2% to 3.11 million cases for Radico Khaitan.
- Net sales from Prestige & Above brands of Radico Khaitan grew by 29.1% to ₹519.7 crore.
- Prestige & Above brands contributed 71.3% to the total IMFL sales value for Radico Khaitan.
- Revenue from Operations rose by 46.6% to ₹1,160.9 crore for Radico Khaitan.
- Radico Khaitan’s Gross Profit increased by 48.4% to ₹485.8 crore, with a margin of 41.8%.
- EBITDA for Radico Khaitan grew by 47.6% to ₹142.2 crore, with a margin of 12.2%.
- Total comprehensive income reached ₹73.4 crore for Radico Khaitan, up by 29.5% compared to Q3 FY2023.
- Over the 9-month period, Radico Khaitan’s total IMFL volume increased by 2.7% to 21.57 million cases.
- Net sales from Prestige & Above brands of Radico Khaitan reached ₹1,428.9 crore, contributing 67.0% to total IMFL sales value.
- Revenue from Operations for the 9-month period amounted to ₹3,039.8 crore for Radico Khaitan.
- Gross Profit stood at ₹1,310.0 crore for Radico Khaitan, with a margin of 43.1%.
- EBITDA was ₹381.7 crore for Radico Khaitan, representing a margin of 12.6%.
Radico Khaitan Share Price Target 2024 To 2030
Radico Khaitan Share Price Target 2024
| Month | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| March 2024 | ₹1,871.90 | ₹1,627.74 |
| April 2024 | ₹1,817.38 | ₹1,580.33 |
| May 2024 | ₹1,790.52 | ₹1,556.98 |
| June 2024 | ₹1,854.98 | ₹1,613.03 |
| July 2024 | ₹1,836.43 | ₹1,596.90 |
| August 2024 | ₹1,909.89 | ₹1,660.77 |
| September 2024 | ₹1,986.28 | ₹1,727.20 |
| October 2024 | ₹1,947.34 | ₹1,693.34 |
| November 2024 | ₹2,005.76 | ₹1,744.14 |
| December 2024 | ₹2,055.90 | ₹1,787.74 |
In March 2024, Radico Khaitan’s share price is anticipated to range between ₹1,871.90 (expected maximum) and ₹1,627.74 (expected minimum). As we progress into April, the expected price will only see a slight dip, with the maximum projected at ₹1,817.38 and the minimum at ₹1,580.33. Moving forward, the expected price will gradually rise, reaching an anticipated maximum of ₹2,055.90 and a minimum of ₹1,787.74 by December 2024. Investors can expect the share price to exhibit an upward trend over the coming months, with fluctuations reflecting market dynamics and company performance.
Radico Khaitan Share Price Target 2025
| when | Maximum Price | Minimum Price |
| January 2025 | ₹2,097.02 | ₹1,613.09 |
| February 2025 | ₹2,150.79 | ₹1,654.45 |
| March 2025 | ₹2,234.67 | ₹1,718.98 |
| April 2025 | ₹2,190.85 | ₹1,685.27 |
| May 2025 | ₹2,127.04 | ₹1,636.19 |
| June 2025 | ₹2,222.76 | ₹1,709.81 |
| July 2025 | ₹2,179.18 | ₹1,676.29 |
| August 2025 | ₹2,246.57 | ₹1,728.13 |
| September 2025 | ₹2,325.20 | ₹1,788.62 |
| October 2025 | ₹2,385.66 | ₹1,835.12 |
| November 2025 | ₹2,445.30 | ₹1,881.00 |
| December 2025 | ₹2,506.43 | ₹1,928.02 |
In 2025, Radico Khaitan’s share price is poised to demonstrate a progressive trajectory, with both the maximum and minimum prices expected to show consistent growth. The anticipated maximum prices across the months range from ₹2,097.02 in January to ₹2,506.43 in December, reflecting a steady upward trend. Conversely, the projected minimum prices are also on an ascending path, starting from ₹1,613.09 in January and reaching ₹1,928.02 in December. This consistent rise in both maximum and minimum prices throughout the year indicates a positive outlook for Radico Khaitan’s shares, suggesting potential opportunities for investors.
Radico Khaitan Share Price Target 2026 To 2030
| Year | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| 2026 | ₹2,631.75 | ₹1,842.23 |
| 2027 | ₹2,894.93 | ₹2,026.45 |
| 2028 | ₹4,052.90 | ₹2,026.45 |
| 2029 | ₹3,509.00 | ₹1,754.50 |
| 2030 | ₹4,561.71 | ₹3,193.19 |
In the upcoming years from 2026 to 2030, Radico Khaitan’s share price targets depict a promising trajectory, showcasing substantial growth potential. For the year 2026, the anticipated maximum price is expected to reach ₹2,631.75, while the minimum price is projected to be around ₹1,842.23. Moving forward to 2027, the maximum price target escalates to ₹2,894.93, with the minimum price maintaining stability at ₹2,026.45. In 2028, a significant surge is anticipated, with the maximum price target soaring to ₹4,052.90, while the minimum price remains unchanged at ₹2,026.45. The trend continues positively, reflecting growth prospects and investor confidence in the company’s performance.
Radico Khaitan’s Financial Condition (Last 5 Years)
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | TTM | |
| Sales + | 2,063 | 2,395 | 2,374 | 2,859 | 3,133 | 3,872 |
| Expenses + | 1,713 | 2,023 | 1,965 | 2,457 | 2,775 | 3,409 |
| Operating Profit | 351 | 372 | 409 | 402 | 359 | 462 |
| OPM % | 17% | 16% | 17% | 14% | 11% | 12% |
| Other Income + | 13 | -15 | 20 | 11 | 9 | 8 |
| Interest | 36 | 32 | 22 | 13 | 22 | 51 |
| Depreciation | 42 | 53 | 54 | 65 | 71 | 102 |
| Profit before tax | 286 | 273 | 353 | 335 | 275 | 317 |
| Tax % | 34% | 17% | 23% | 25% | 26% | |
| Net Profit + | 188 | 228 | 271 | 252 | 204 | 236 |
| EPS in Rs | 14 | 17 | 20 | 19 | 15 | 18 |
| Dividend Payout % | 9% | 12% | 12% | 16% | 20% |
Over the last five years, Radico Khaitan has demonstrated a mixed financial performance. Sales have shown a consistent upward trend, increasing from ₹2,063 crores in March 2019 to ₹3,872 crores in the trailing twelve months (TTM) ending in March 2023, indicating steady revenue growth. However, expenses have also risen proportionally, reaching ₹3,409 crores in the TTM period, potentially impacting profit margins.
Operating profit has fluctuated over the years, peaking at ₹409 crores in March 2021 but declining to ₹462 crores in the TTM ending in March 2023, with an operating profit margin (OPM) of 12%. Despite variations, the OPM has generally remained within a range of 11% to 17% over the period.
Other income has been relatively stable, albeit minimal, contributing marginally to the company’s overall earnings. Interest expenses have fluctuated, reaching ₹51 crores in the TTM period, potentially indicating varying debt obligations.
Profit before tax reached its highest point at ₹353 crores in March 2021 but decreased to ₹317 crores in the TTM ending in March 2023. Net profit also experienced fluctuations, with a slight decrease from ₹271 crores in March 2021 to ₹236 crores in the TTM period.
Despite these fluctuations, Radico Khaitan has maintained a stable dividend payout percentage, ranging from 9% to 20% over the five-year period, ensuring consistent returns to shareholders amidst changing financial dynamics.
FAQS
- What is the current market price of Radico Khaitan Ltd?Answer: The current market price of Radico Khaitan Ltd is ₹1,643.
- What is the market capitalization of Radico Khaitan Ltd?Answer: The market capitalization of Radico Khaitan Ltd is ₹21,973 Cr.
- What is the high and low price range of Radico Khaitan Ltd?Answer: The high and low price range of Radico Khaitan Ltd is ₹1,885 and ₹1,069, respectively.
- What is the stock’s Price/Earnings (P/E) ratio?Answer: The stock’s Price/Earnings (P/E) ratio is 93.0.
- What is the book value per share of Radico Khaitan Ltd?Answer: The book value per share of Radico Khaitan Ltd is ₹168.
- What is the dividend yield of Radico Khaitan Ltd?Answer: The dividend yield of Radico Khaitan Ltd is 0.18%.
- What are the Return on Capital Employed (ROCE) and Return on Equity (ROE) of Radico Khaitan Ltd?Answer: The ROCE of Radico Khaitan Ltd is 11.6%, and the ROE is 9.82%
Should one invest in Radico Khaitan?
Radico Khaitan Ltd, a prominent player in the Indian alcoholic beverages industry, has exhibited notable financial performance over the past few years. With a market capitalization of ₹21,973 Cr and a current price of ₹1,643, the company has shown a consistent growth trajectory. Despite facing challenges such as a low return on equity of 9.82% and trading at 9.80 times its book value, Radico Khaitan has demonstrated resilience in its operations.
Analyzing its financial statements, Radico Khaitan’s sales have witnessed steady growth, with a compounded sales growth of 10% over the past decade. However, the company’s profit growth has seen fluctuations, with a compounded profit growth of 10% over the same period. It is worth noting that the company’s return on capital employed (ROCE) stands at 11.6%, reflecting its efficient utilization of resources.
Furthermore, the company’s debt-equity ratio and other financial ratios indicate a stable financial position. With a diverse shareholder base and consistent dividend payouts, Radico Khaitan presents an attractive investment opportunity for investors seeking exposure to the alcoholic beverages sector.
In conclusion, considering its strong market presence, consistent financial performance, and growth prospects, investing in Radico Khaitan could be a favorable choice for investors looking for long-term growth potential in the alcoholic beverages industry.
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