Radico Khaitan Gets A 'Buy' From HDFC Securities Citing Favorable Factors

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Institutional Equities.Radico Khaitan Ltd. trades at 63 times and 47 times on FY26 and FY27 earnings, respectively. Historically, over a five-year average PE, it has traded at 45 times and 40 times from a one-year and two-year forward perspective. These strong valuations have held up despite macro challenges faced by both the sector and the company, such as the highway liquor ban, the Covid-19 pandemic, and state-level interventions due to regime changes. As a result, Radico has not been able to perform to its full potential during this period. In our view, the best is yet to come, as several of these macro headwinds are now behind us. We expect Radico to report a revenue/Ebitda/PAT CAGR of 15%, 25%, and 33% over FY24-27, driven by favorable state regulations, a J-shaped ramp-up in its luxury and semi-luxury portfolio, and a benign raw material environment. Additionally, we anticipate ROE to improve from 11% in FY24 to 18% in FY27 as the company scales up its Sitapur plant. Given these factors, we upgrade Radico to a Buy from Add and value it at 52 times, representing a 30% premium to its five-year average PE..Click on the attachment to read the full report:.MCX Q2 Results - Motilal Oswal Retains 'Buy' Rating On The Stock; Sees 15% Upside Potential.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Radico Khaitan Gets A 'Buy' From HDFC Securities Citing Favorable Factors

Regulatory policy interventions, premiumisation and benign raw material cost bodes well for the company, says the brokerage.

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Radico Khaitan Gets A 'Buy' From HDFC Securities Citing Favorable Factors

Regulatory policy interventions, premiumisation and benign raw material cost bodes well for the company, says the brokerage.

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