Radico Khaitan Share Price Hits Life High As Net Profit Rises In September Quarter

Radico Khaitan Ltd.'s share price rose to the highest level since its listing on bourses after it reported a rise in its net profit during the July–September quarter. The company's consolidated net profit rose 25% on the year to Rs 81 crore in the second quarter, compared to Rs 65 crore in the same period last year.

The company's net profit rose due to better operating profitability. The Ebitda rose 35% on the year to Rs 163 crore from Rs 121 crore in the quarter ended Sept. 30, 2024. The operating profit margin rose 150 basis points on an annualised basis to 14.6% in July–September from 13.1%, the company said in an exchange filing Thursday.

Radico Khaitan's revenue rose 9% on the year to Rs 1,116 crore from Rs 925 crore, the exchange filing said.

Indian–made foreign liquor volumes witnessed a decline of 2.5% on an annualised basis in the September quarter, Radico Khaitan said in the investor presentation. Its Prestige and Above brands volume rose 12.6% on the year in contrast to IMFL volumes.

Radico Khaitan's share price rose as much as 9.93%, the highest level since its listing on June 18, 2003. It pared gains to trade 1.54% higher at Rs 2,331.50 apiece as of 11:38 a.m., as compared to a 1.10% decline in the NSE Nifty 50.

The stock has risen 95.9% in 12 months, and 43.5% on year-to-date basis. Total traded volume so far in the day on NSE stood at 6.67 times its 30-day average. The relative strength index was at 72.73, which implied the stock is slightly overbought.

Out of 12 analysts tracking the company, 10 maintain a 'buy' rating, one recommends a 'hold' and one suggests 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies a downside of 11.8%.