⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
RADICO - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | RADICO | Market Cap | 36,783 Cr. | Current Price | 2,744 ₹ | High / Low | 3,695 ₹ |
| Stock P/E | 69.3 | Book Value | 218 ₹ | Dividend Yield | 0.15 % | ROCE | 16.2 % |
| ROE | 13.6 % | Face Value | 2.00 ₹ | DMA 50 | 3,031 ₹ | DMA 200 | 2,866 ₹ |
| Chg in FII Hold | 1.82 % | Chg in DII Hold | -1.45 % | PAT Qtr | 162 Cr. | PAT Prev Qtr | 139 Cr. |
| RSI | 39.1 | MACD | -101 | Volume | 2,93,720 | Avg Vol 1Wk | 6,92,596 |
| Low price | 1,846 ₹ | High price | 3,695 ₹ | PEG Ratio | 6.28 | Debt to equity | 0.21 |
| 52w Index | 48.6 % | Qtr Profit Var | 69.1 % | EPS | 38.7 ₹ | Industry PE | 31.4 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT at ₹162 Cr, up from ₹139 Cr, showing sequential growth. EPS at ₹38.7 indicates moderate earnings power.
- Margins: ROE at 13.6% and ROCE at 16.2% reflect decent efficiency but not industry-leading.
- Debt Ratios: Debt-to-equity at 0.21 shows low leverage, enhancing financial stability.
- Cash Flows: Healthy operating cash generation implied by consistent profitability and manageable debt.
💹 Valuation Indicators
- P/E Ratio: 69.3, more than double the industry average of 31.4, suggesting significant overvaluation.
- P/B Ratio: Current price ₹2,744 vs. book value ₹218 → ~12.6x, expensive relative to assets.
- PEG Ratio: 6.28, very high, indicating valuation is stretched compared to growth prospects.
- Intrinsic Value: Current valuation exceeds intrinsic worth, offering little margin of safety.
🏢 Business Model & Competitive Advantage
- Radico Khaitan operates in alcoholic beverages, with strong brands in spirits and liquor segments.
- Competitive advantage lies in brand recognition, distribution strength, and diversified product portfolio.
- Business model benefits from rising premiumization trends in the liquor industry.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Safer accumulation range between ₹2,400 – ₹2,550, closer to DMA200 and support levels.
- Long-Term Holding: Suitable for investors betting on premium liquor demand, though current valuation is expensive. Best to accumulate on dips.
✅ Positive
- Quarterly PAT growth from ₹139 Cr to ₹162 Cr.
- Strong 52-week performance with 48.6% gain.
- FII holding increased (+1.82%), showing foreign investor confidence.
⚠️ Limitation
- High P/E ratio compared to industry average.
- PEG ratio of 6.28 suggests stretched valuation.
- Dividend yield of 0.15% is negligible.
📉 Company Negative News
- DII holding decreased (-1.45%), showing reduced domestic institutional confidence.
- Stock trading below DMA50 and DMA200 indicates weak momentum.
📈 Company Positive News
- Quarterly profit variation of 69.1% YoY highlights strong growth momentum.
- EPS at ₹38.7 reflects consistent earnings power.
- Low debt-to-equity ratio (0.21) ensures financial resilience.
🏭 Industry
- Alcoholic beverages sector trades at industry PE of 31.4, much lower than Radico’s 69.3, showing premium valuation.
- Sector growth supported by premiumization and rising consumer demand.
🔎 Conclusion
- Radico Khaitan is financially stable with strong brand presence and growth momentum.
- Valuation is stretched, limiting near-term upside, but long-term prospects remain positive given premium liquor demand.
- Best suited for long-term investors with entry around ₹2,400 – ₹2,550 offering a better margin of safety.
Would you like me to also prepare a comparative HTML snapshot of Radico versus United Spirits to highlight valuation and profitability differences in the liquor industry?