RADICO - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Rating: 3.1

📊 Core Financials & Returns

Return Ratios

ROCE at 16.0% and ROE at 13.3% — decent, but not standout for current valuation.

Earnings Snapshot

EPS ₹25.8; QoQ PAT dipped slightly from ₹95.5 Cr. to ₹92.1 Cr.

Quarterly profit variance at 70.8% — reflects volatility or non-recurring income.

Debt Profile

Debt-to-equity at 0.27 — manageable, though worth monitoring if expansion intensifies.

Dividend Yield

At just 0.15%, income generation is minimal — clearly a growth play.

💰 Valuation & Market Positioning

Metric Value Insight

P/E Ratio 104 Extremely overvalued vs industry PE (32.9) — pricing in high growth

P/B Ratio ~13.04 Elevated — market assigns heavy premium to intangibles & brand

PEG Ratio 11.0 Suggests growth may not justify the valuation multiple

RSI 50.9 Neutral — no strong momentum cues

MACD 24.2 Bullish crossover — trend favoring upside

DMA Levels ₹2632 / ₹2377 vs price ₹2687 Near resistance zone — room to correct or consolidate

Volume Surge: Above-average activity may reflect institutional rebalancing or retail froth.

Institutional Trends

FII buying (+0.82%)

DII trimming (-0.81%) — mixed signals, but FII interest is encouraging.

🍾 Business Model & Competitive Edge

Core Segment: Alcoholic beverages — dominant in premium & IMFL categories.

Brand Power: Portfolio includes Magic Moments, Rampur, Morpheus — strong recall in domestic & export markets.

Advantage

Premiumisation strategy aids margin expansion.

Broad distribution with rural & urban penetration — difficult for new entrants to replicate.

Concerns

Valuation excess + high PEG → execution has little room for error.

Regulatory volatility & raw material inflation remain industry headwinds.

📉 Entry Zone & Long-Term View

Suggested Entry: ₹2,500–₹2,600 — closer to 50DMA support and pre-breakout range.

Holding Strategy

Suitable for growth-oriented portfolios but not ideal for value or income seekers.

Long-term thesis hinges on sustained brand growth and margin improvement.

Monitor quarterly earnings, input cost trends, and regulatory shifts carefully.

Want a breakdown of RADICO vs peers like United Spirits or Pernod Ricard India on brand strength and profitability? I’ll pop the cork and serve you a crisp comparison. Just say when. 🍷

Edit in a page