RADICO - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | RADICO | Market Cap | 45,835 Cr. | Current Price | 3,423 ₹ | High / Low | 3,695 ₹ |
| Stock P/E | 86.4 | Book Value | 218 ₹ | Dividend Yield | 0.12 % | ROCE | 16.2 % |
| ROE | 13.6 % | Face Value | 2.00 ₹ | DMA 50 | 2,954 ₹ | DMA 200 | 2,862 ₹ |
| Chg in FII Hold | -2.19 % | Chg in DII Hold | 3.32 % | PAT Qtr | 162 Cr. | PAT Prev Qtr | 139 Cr. |
| RSI | 70.7 | MACD | 177 | Volume | 5,03,394 | Avg Vol 1Wk | 5,26,943 |
| Low price | 2,310 ₹ | High price | 3,695 ₹ | PEG Ratio | 7.83 | Debt to equity | 0.21 |
| 52w Index | 80.4 % | Qtr Profit Var | 69.1 % | EPS | 38.7 ₹ | Industry PE | 40.4 |
📊 RADICO shows strong earnings momentum with quarterly PAT growth (+69.1%) and EPS of ₹38.7, supported by healthy ROCE (16.2%) and ROE (13.6%). Debt-to-equity remains low at 0.21, ensuring financial stability. However, valuations are stretched with a very high P/E of 86.4 vs industry average of 40.4, and PEG ratio of 7.83 indicates growth is overpriced. Dividend yield is negligible at 0.12%, limiting income appeal. Technicals show overbought RSI (70.7), suggesting caution for new entries.
💡 Ideal Entry Price Zone: ₹3,100 – ₹3,250 (near DMA 200 and valuation comfort).
⏳ Exit Strategy / Holding Period: Long-term investors can hold with a 3–5 year horizon, but partial profit booking is advisable near ₹3,650–₹3,700 (recent highs). Monitoring ROE, PEG ratio, and institutional flows will be key for sustained holding.
✅ Positive
- Strong ROCE (16.2%) and ROE (13.6%).
- Low debt-to-equity ratio (0.21) ensures financial stability.
- Quarterly PAT growth (+69.1%) highlights earnings momentum.
- DII holdings increased (+3.32%), showing domestic institutional confidence.
- MACD positive (177) confirms bullish momentum.
⚠️ Limitation
- Extremely high P/E (86.4) vs industry average (40.4).
- PEG ratio of 7.83 indicates overpriced growth.
- Dividend yield very low at 0.12%.
- RSI at 70.7 suggests overbought conditions.
📉 Company Negative News
- FII holdings reduced (-2.19%).
- Valuations stretched, limiting near-term upside.
📈 Company Positive News
- Quarterly PAT improved (₹162 Cr vs ₹139 Cr).
- Stock delivered 80.4% gain over the past year.
🏭 Industry
- Industry P/E: 40.4, highlighting RADICO’s premium valuation.
- Beverages and spirits sector supported by consumer demand and premiumization trends.
🔎 Conclusion
RADICO is fundamentally strong with robust earnings growth and low debt, but valuations are stretched, making it a moderate candidate for long-term investment. New investors should wait for entry around ₹3,100–₹3,250 for safety. Existing holders can maintain a 3–5 year horizon, with partial profit booking near ₹3,650–₹3,700. Monitoring institutional flows and valuation metrics will be critical for sustained performance.