RADICO - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.0

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📊 Fundamental Analysis Report

• Stock Code: RADICO
• Market Cap: ₹42,060 Cr
• Current Price: ₹3,139
• 52W High/Low: ₹3,423 / ₹1,846
• EPS: ₹34.3
• Stock P/E: 90.6 vs Industry P/E: 35.6 ❗
• PEG Ratio: 8.21 ❗ (Overvalued vs Growth)
• Book Value: ₹218 | P/B Ratio: ~14.4 ❗
• ROE: 13.6% | ROCE: 16.2% 🔶
• Debt to Equity: 0.21 🟢 (Low Leverage)
• Dividend Yield: 0.13% 🚫
• Quarterly PAT: ₹139 Cr (↔ Stable)
• RSI: 56.2 | MACD: 66.4 📈

✅ Positive

• Strong ROE and ROCE indicate solid profitability and capital efficiency.
• Low debt-to-equity ratio supports financial stability and expansion capacity.
• Quarterly profit variation of 69.1% YoY reflects robust earnings growth.
• Price trading above DMA 50 and 200 confirms bullish technical momentum.
• FII holding increased by 0.23%, indicating foreign investor confidence.

⚠️ Limitation

• High P/E and PEG ratios suggest valuation is stretched relative to growth.
• P/B ratio above 14 may deter value-focused investors.
• Dividend yield is minimal, offering limited income potential.
• DII holding declined by 0.48%, reflecting cautious domestic sentiment.

📉 Company Negative News

• Valuation metrics indicate overpricing compared to industry benchmarks.

📈 Company Positive News

• Consistent quarterly PAT of ₹139 Cr shows earnings stability.
• Strong volume surge above weekly average reflects rising investor interest.
• Stock has delivered 82% return over the past year, signaling strong market sentiment.

🏦 Industry

• RADICO operates in the alcoholic beverages and spirits sector.
• Industry P/E of 35.6 is significantly lower, suggesting RADICO trades at a premium.
• Sector benefits from rising premiumization, brand loyalty, and expanding rural consumption.

🧭 Conclusion

• Entry Zone: ₹2,950–₹3,050 (near DMA 50 and RSI neutral)
• Long-Term View: Strong brand, growth momentum, and financial health support long-term holding. Accumulate selectively on dips due to valuation concerns.