RADICO - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.7

📊 Core Financials Analysis

Profitability

ROE: 13.6% and ROCE: 16.2% — solid, indicating decent capital efficiency.

EPS: ₹30.1 — respectable, with a strong quarterly profit jump of 81.6% (₹139 Cr vs ₹90.7 Cr).

Debt-to-equity: 0.28 — low leverage, a positive for financial stability.

Dividend & Cash Flow

Dividend Yield: 0.13% — minimal, suggesting reinvestment focus.

Cash flows are likely healthy, supported by consistent brand-led revenue growth.

📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio 99.0 Extremely overvalued vs industry PE of 33.0

P/B Ratio ~14.97 High, not fully justified by ROE

PEG Ratio 8.96 Overvalued relative to earnings growth

Intrinsic Value ₹2,500–₹2,700 (est.) Current price ~12–20% above fair value

🧠 Business Model & Competitive Edge

Company Profile: Radico Khaitan Ltd is one of India’s leading spirits manufacturers, known for brands like Magic Moments, 8PM, and Rampur Indian Single Malt.

Strengths

Strong brand portfolio across premium and mass-market segments.

Expanding export footprint and premiumization strategy.

Institutional interest rising — FII holdings up by 0.82%.

Challenges

High valuation multiples not backed by proportional earnings growth.

Thin margins in mass-market liquor and regulatory risks in alcohol sector.

📈 Technical & Sentiment Overview

RSI: 67.0 — nearing overbought zone, short-term caution advised.

MACD: 44.1 — bullish momentum, trend continuation likely.

DMA 50 & 200: Price above both — confirms strong uptrend.

Volume: Slightly below average — cooling investor interest.

FII/DII Holding: Mixed — FII increase, DII reduction.

💡 Entry Zone & Long-Term Guidance

Suggested Entry Range: ₹2,500–₹2,700 — closer to intrinsic value and technical support.

Holding Strategy

Suitable for long-term investors seeking exposure to India’s premium liquor market.

Price targets for FY26 range from ₹3,296 to ₹3,809; long-term targets for FY30 range from ₹5,064 to ₹5,503

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Monitor premium segment growth, export expansion, and regulatory developments.

Radico Khaitan is a brand-rich consumer play with strong fundamentals and sector tailwinds, but current valuations suggest staggered accumulation. You can explore its long-term forecast on WalletInvestor or review technical targets on Daily Bulls.

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walletinvestor.com

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dailybulls.in

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