Is Radico Khaitan A Good Buy? Check Share Price, Analyst Calls And Price Targets

Radico Khaitan is one of the biggest alcoholic beverages company in the country. Known for its popular brands like Magic Moments vodka and Rampur Indian Single Malt whisky, the company has a significant presence in both the domestic and international markets. The company has a market cap of around ₹16,000 crore making it the third-largest listed alcohol stock in the Indian markets.

In this article, we bring you a deep dive into the company’s financial health, its recent stock performance, and everything you need to know about investing in the alcohol behemoth.

Radico Khaitan Company History

Radico Khaitan’s journey began in 1943, and over the years, it has grown into one of the largest spirits companies in India. The company has two distilleries, one in Rampur, Uttar Pradesh and the second one in Aurangabad Maharashtra. It has more than 15 brands across various categories including whisky, rum, brandy, and vodka.

The company has a strong presence in both the domestic and international markets, with its products being exported to over 85 countries worldwide. The company has a total capacity of over 157 million litres and operates 28 bottling units, spread across the country.

How To Buy Radico Khaitan Shares

Radico Khaitan is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in India. So you can easily buy Radico Khaitan shares or check the Radico Khaitan share price. You will have to open a demat account with a brokerage firm through which you will able to invest in Radico Khaitan shares and monitor the Radico Khaitan share price in real-time.

The Radico share price has been on an impressive rally this year and even hit a new 52-week high of ₹1,240 on June 20. At the time of writing, Radico Khaitan’s share price is up over 16% since the start of the year.

See Also: What Is Campa Cola’s Share Price And How To Buy?

Radico Khaitan Financials

Before investing in any company, it is very important to know its fundamentals in and out. Here is a snapshot of the company’s financial performance over the past three years.

ParticularsFY2023FY2022FY2021
Revenue3,142.8 2,868.02,418.1
EBITDA358.4402.2409.0
Net Profits220.4263.2277.2
All figures are in ₹ crore.

As is evident from the table the company’s margins have declined in recent years, even though revenue has been on a steady rise. However, finances are only one part of the several factors that can affect the Radico share price.

Factors Affecting Radico Khaitan Share Price

Several factors can influence the share price of Radico Khaitan. These include:

  • Performance of the Alcoholic Beverage Industry: The overall health of the alcoholic beverage industry directly impacts the performance of Radico Khaitan and consequently the Radico Khaitan share price. Factors such as consumer trends, government regulations, and global events can significantly influence the industry.
  • Economic Conditions: Macroeconomic conditions, including GDP growth, inflation rates, and consumer confidence, can affect the demand for alcoholic beverages and, in turn, impact the Radico Khaitan share price.
  • Competition: The alcoholic beverage industry is highly competitive. The performance of competitors, their strategies, and market share can influence Radico Khaitan's share price.
  • Government Regulations: Changes in government policies related to the alcoholic beverage industry can impact operations and profitability and the Radico share price.

Analyst Calls

Analysts’ opinions on Radico Khaitan’s stock are varied, with some maintaining a bullish stance while others are not so optimistic. It’s advisable to consider these opinions but also conduct your own research or consult with a financial advisor before making investment decisions. Here are the latest analyst calls and price targets for the Radico Khaitan share price.

Brokerage FirmsRatingTarget Price
HDFC Securities Sell₹900
ICICI DirectBuy₹1,350
SharekhanHold₹1,250

Fun Fact: Ace investor Mukul Agrawal is also invested in the stock. Agrawal holds a 1.05% stake in the company.

Alternate Investment Ideas: Competitors

If you're interested in the alcoholic beverages industry, there are other investment options to consider. Competitors like United Spirits and United Breweries are also listed on the Indian stock exchanges. Sula Vineyards which made its market debut late last year has also gained some steam. Investing in these companies can be an alternative way to gain exposure to the Indian alcoholic beverages industry. However, like any investment, these come with their own set of risks and rewards. Therefore, thorough research and possibly consultation with a financial advisor are recommended before making investment decisions.

Read Next: What’s Sula Vineyards Share Price: Is It Time To Buy?

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Comments
Loading...
Posted In: EquitiesEducationMarketsGeneralRadico Khaitan

Loading...