Radico Khaitan Q3 Results Review - Stellar Operating Performance, Raw Material A Headwind: Dolat Capital

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..Dolat Capital Report.Radico Khaitan Ltd.’s Q3 FY24 was healthy. Revenue/gross profit/Ebitda/adjusted profit after tax grew by +47/48/28/30% YoY. These was led by robust revenue growth in Prestige & Above at +29% YoY, non-Indian-made foreign liquor +174% but off-set partly by decline in Popular of - 11%. PAT trailed Ebitda due to higher D&A and interest costs. Radico’s FY23-26E is expected to be a strong earnings year (~32% compound annual growth rate) driven by-strong growth in P&A,volume recovery in Popular in FY25- 26,~15-20% price increase coupled with robust volume growth in CL in FY24,benefit from backward integration and as financial leverage plays out. Softening of raw material in FY25/26 could lead to major earnings delta and is not factored currently. Growth slowdown in P&A is key risk.  Valuations at 85/68/50 times FY24/25/26E earnings per share captures the business optimism but as growth pans out, we expect earnings and roll-forward led price uptick to continue. Stock has moved up by 35% since last results. Reiterate Reduce with revised target price of Rs 1,780 at 50 times FY26E EPS (versus Rs 1,700 at 50 times FY26 EPS). We remain positive on business but for valuations..Click on the attachment to read the full report:.United Spirits Q3 Results Review - Prestige And Above Outperformance Sustains: Motilal Oswal.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 Q3 Results Review - Stellar Operating Performance, Raw Material A Headwind: Dolat Capital

Stellar growth in P&A (Indian made foreign liquor) and non-IMFL business

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Radico Khaitan Q3 Results Review - Stellar Operating Performance, Raw Material A Headwind: Dolat Capital

Stellar growth in P&A (Indian made foreign liquor) and non-IMFL business

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