⚠ 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: 3.2
| Stock Code | RADICO | Market Cap | 36,511 Cr. | Current Price | 2,725 ₹ | High / Low | 3,695 ₹ |
| Stock P/E | 68.8 | Book Value | 218 ₹ | Dividend Yield | 0.15 % | ROCE | 16.2 % |
| ROE | 13.6 % | Face Value | 2.00 ₹ | DMA 50 | 2,826 ₹ | DMA 200 | 2,834 ₹ |
| Chg in FII Hold | 1.82 % | Chg in DII Hold | -1.45 % | PAT Qtr | 162 Cr. | PAT Prev Qtr | 139 Cr. |
| RSI | 45.6 | MACD | -8.80 | Volume | 3,70,596 | Avg Vol 1Wk | 4,31,837 |
| Low price | 2,132 ₹ | High price | 3,695 ₹ | PEG Ratio | 6.23 | Debt to equity | 0.21 |
| 52w Index | 37.9 % | Qtr Profit Var | 69.1 % | EPS | 38.7 ₹ | Industry PE | 32.0 |
📊 Core Financials
- Revenue Growth: Quarterly PAT improved from ₹139 Cr to ₹162 Cr (+69.1% YoY), showing strong growth momentum.
- Profit Margins: Margins remain healthy, supported by premium liquor brands.
- Debt Ratios: Low debt-to-equity (0.21), indicating financial stability.
- Cash Flows: Positive operating cash flows driven by strong demand in premium spirits.
- Return Metrics: ROCE at 16.2% and ROE at 13.6% → decent efficiency, though below top peers.
💹 Valuation Indicators
- P/E Ratio: 68.8 vs Industry PE of 32.0 → significantly overvalued.
- P/B Ratio: ~12.5 (Price ₹2,725 / Book Value ₹218) → very high premium.
- PEG Ratio: 6.23 → expensive relative to growth.
- Intrinsic Value: Current price well above fair value, limiting upside potential.
🏢 Business Model & Competitive Advantage
- Radico Khaitan operates in alcoholic beverages, focusing on premium spirits and IMFL brands.
- Competitive advantage lies in strong brand portfolio and growing premiumization trend.
- Low leverage and consistent profitability strengthen overall health, but valuations are stretched.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between ₹2,400 – ₹2,500 (closer to support levels).
- Long-Term Holding: Suitable for investors seeking exposure to premium liquor growth, but caution advised due to high valuations.
✅ Positive
- Strong quarterly PAT growth (+69.1% YoY).
- Low debt-to-equity (0.21).
- FIIs increased holdings (+1.82%).
- Strong brand presence in premium spirits.
⚠️ Limitation
- Extremely high P/E ratio (68.8).
- High P/B ratio (~12.5).
- PEG ratio (6.23) suggests growth is expensive.
- Dividend yield negligible (0.15%).
📉 Company Negative News
- DII holdings reduced (-1.45%).
- Stock trading well below 52-week high (₹3,695 → ₹2,725).
- Weak technical indicators (MACD -8.80).
📈 Company Positive News
- Quarterly PAT growth shows strong demand recovery.
- FIIs increased holdings (+1.82%).
- Premiumization strategy gaining traction in domestic and export markets.
🏭 Industry
- Alcoholic beverages industry growing with premiumization and rising consumer demand.
- Industry PE at 32.0, highlighting Radico’s steep premium valuation.
🔎 Conclusion
Radico Khaitan shows strong growth momentum and brand strength, supported by low debt and rising demand for premium spirits. However, valuations are stretched with high P/E and P/B ratios. Investors may accumulate near support levels for long-term exposure to premium liquor growth, but should remain cautious of overvaluation risks.