Beverages
Radico Khaitan Limited engages in the manufacture and trading of Indian made foreign liquor (IMFL) and country liquor in India and internationally. It offers IMFL products in various categories of whisky, brandy, rum, gin, and vodka under the After Dark Whisky, Contessa Rum, Jaisalmer Indian Craft Gin, Magic Moments Vodka, Magic Moments Verve Vodka, Magic Moments Dazzle Vodka, Morpheus XO Brandy and Morpheus Blue Brandy, Old Admiral Brandy, Rampur Indian Single Malt Whisky, Royal Ranthambore Heritage Collection-Royal Crafted Whisky, 1965 The Spirit of Victory Premium XXX Rum, 1965 The Spirit of Victory Lemon Dash Premium Flavored Rum, 8PM Premium Black Whisky, 8PM Whisky, The KOHINOOR RESERVE INDIAN DARK RUM, Rampur Indian Single Malt Jugabandi series #3 and #4, MAGIC MOMENTS Remix Pink Vodka, SPIRIT OF VICTORY 1999 PURE MALT WHISKY, Happiness in a Bottle CRAFTED GIN, TROPICANA, Bermuda, WHYTEHALL, BRIHAN'S Napoleon Brandy, Carlo Rossi, and AFRI BULL CAFÉ RUM brand names. The company also provides bottling services to other spirit manufacturers. It offers its products to state government, state-owned corporation, canteen stores department, private distributors, and retailers in open market. The company also exports its products. The company was formerly known as Rampur Distillery Company. Radico Khaitan Limited was founded in 1943 and is based in New Delhi, India.
Smart Money: Smart money has been increasing their position in the stock.
Technicals: Bullish SharesGuru indicator.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Balance Sheet: Strong Balance Sheet.
Size: Market Cap wise it is among the top 20% companies of india.
No major cons observed.
Comprehensive comparison against sector averages
RADICO metrics compared to Beverages
Category | RADICO | Beverages |
---|---|---|
PE | 105.53 | 57.55 |
PS | 1.96 | 1.44 |
Growth | 7.5 % | 5.7 % |
RADICO vs Beverages (2021 - 2025)
Summary of Radico Khaitan's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Feb 25
Management Outlook:
Radico Khaitan anticipates sustained growth driven by premiumization, aiming for double-digit volume growth in Prestige & Above (P&A) and Luxury categories. The Luxury & Semi-Luxury portfolio (Rampur, Sangam, Jaisalmer, Royal Ranthambore) is projected to surpass Rs.500 crore net sales in FY26 (vs. Rs.250 crore in 9M FY25), supported by domestic and international demand. Management expects margins to expand by 100"“125 basis points annually, targeting 15% EBITDA margin by FY26, driven by premium mix and cost efficiencies.
Key Highlights:
Last updated: Feb 25
Major Questions and Answers:
1. Question: What is the current market share of Radico in Andhra Pradesh, and how does it compare to previous cycles? Are local players largely out of the market?
Answer: Radico holds a 15"“17% market share in Andhra Pradesh, a 30 lakh-cases market. Local players remain active but operate primarily in lower-price segments. National brands like Radico are gaining traction due to regulatory stability and route-to-market changes. The company expects continued growth in Q4 and beyond, balancing secondary/tertiary sales.
2. Question: What drives optimism for pan-India demand amid urban consumption slowdowns? Is marriage demand the key factor?
Answer: Growth is broad-based across premium and regular segments, driven by industry buoyancy, not just weddings. The premium segment (Prestige & Above) grew 17.7% in volume, reflecting category expansion (now 42% of IMFL industry vs. 25% three years ago). Radico's leadership in gin, rum, and vodka supports sustained momentum.
3. Question: What factors will drive the Luxury & Semi-Luxury portfolio to Rs.500 crores in FY26? Is export a significant contributor?
Answer: Domestic expansion (not exports) is the primary driver, with Luxury/Semi-Luxury brands growing 45% in value and 54% in volume in Q3. Distribution scaling, premium pricing, and consumer acceptance (e.g., Rampur, Sangam, Jaisalmer) will fuel growth. Exports contribute ~5.5% of volumes but lag domestic growth.
4. Question: How will raw material costs (grain, ethanol) impact margins?
Answer: Recent grain inflation (up to Rs.28,000/ton) pressured margins, but government initiatives (e.g., FCI rice for ethanol) may ease costs. Margin improvement (100"“125 bps annually) will stem from premiumization, mix optimization, and stable input costs, not temporary raw material trends.
5. Question: Why does Radico's Country Liquor margin lag peers in Uttar Pradesh?
Answer: Margins (mid-single-digit) align with UP market dynamics, where competitors face similar challenges. Mix of grain/molasses-based products and pricing parity explain comparable margins. Radico's scale and distribution offset new entrants' challenges.
6. Question: When will debt reduce, given Telangana dues and working capital pressures?
Answer: Telangana receivables (not "very high") will resolve by Q4. Seasonal grain inventory (to liquidate by March) and working capital efficiency will reduce debt. Targets "negligible" debt by FY26"“27 via cash flow from premiumization and operational discipline.
7. Question: What growth is expected in the regular segment ex-Andhra, and how sustainable is it?
Answer: Regular segment grew 13.4% in Q3 (partly Andhra-driven), but ex-Andhra growth is mid-single-digit. Recovery stems from Kerala price hikes and export improvements. Rationalization (cost/contribution focus) will sustain modest growth ahead.
8. Question: What capex is planned, and how will it impact margins?
Answer: Annual capex will stabilize at Rs.100"“125 crores (post-major expansions). Margin improvement (125 bps/year) will come from mix shifts to Luxury/Semi-Luxury (higher margins than P&A) and cost optimization, not capex.
Understand Radico Khaitan ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
SAPPHIRE INTREX LIMITED | 33.91% |
RAMPUR INTERNATIONAL LIMITED | 3.93% |
NIPPON LIFE INDIA TRUSTEE LTD-A/C NIPPON INDIA SMA | 3.4% |
KOTAK MAHINDRA TRUSTEE CO LTD A/C KOTAK NIFTY SMAL | 2.82% |
TATA MUTUAL FUND- TATA EQUITY P/E FUND | 2.67% |
ADITYA BIRLA SUN LIFE TRUSTEE PRIVATE LIMITED A/C | 2.61% |
TIMF HOLDINGS | 2.4% |
TATA AIA LIFE INSURANCE COMPANY LIMITED A/C FLEXI | 1.94% |
CLASSIC FINTREX PRIVATE LTD | 1.93% |
HSBC MIDCAP FUND | 1.89% |
INVESTOR EDUCATION AND PROTECTION FUND AUTHORITY M | 1.32% |
SMALLCAP WORLD FUND, INC | 1.31% |
EDELWEISS TRUSTEESHIP CO LTD AC- EDELWEISS MF AC- | 1.21% |
THINK INDIA OPPORTUNITIES MASTER FUND LP | 1.07% |
MUKUL MAHAVIR AGRAWAL | 1.05% |
MASSACHUSETTS INSTITUTE OF TECHNOLOGY | 1.04% |
LALIT KUMAR KHAITAN | 0.18% |
ABHISHEK FISCAL SERVICES PRIVATE LIMITED | 0.07% |
ABHISHEK KHAITAN | 0.06% |
ELKAY FISCAL SERVICES PRIVATE LIMITED | 0.05% |
Distribution across major stakeholders
Distribution across major institutional holders
Detailed comparison of Radico Khaitan against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
GLOBUSSPR | Globus SpiritsBreweries & Distilleries | 3.08 kCr | 3.43 kCr | +1.32% | +34.57% | 166.69 | 0.9 | +11.68% | -86.03% |
Investor Care | |
---|---|
Dividend Yield | 0.27% |
Dividend/Share (TTM) | 6 |
Shares Dilution (1Y) | 0.06% |
Diluted EPS (TTM) | 22.97 |
Financial Health | |
---|---|
Current Ratio | 1.6 |
Debt/Equity | 0.32 |
Debt/Cashflow | 0.22 |
Valuation | |
---|---|
Market Cap | 32.44 kCr |
Price/Earnings (Trailing) | 105.53 |
Price/Sales (Trailing) | 1.96 |
EV/EBITDA | 51.59 |
Price/Free Cashflow | -435.41 |
MarketCap/EBT | 77.3 |
Fundamentals | |
---|---|
Revenue (TTM) | 16.52 kCr |
Rev. Growth (Yr) | 4.5% |
Rev. Growth (Qtr) | 13.61% |
Earnings (TTM) | 307.45 Cr |
Earnings Growth (Yr) | 27.06% |
Earnings Growth (Qtr) | 18.38% |
Profitability | |
---|---|
Operating Margin | 2.54% |
EBT Margin | 2.54% |
Return on Equity | 11.99% |
Return on Assets | 6.97% |
Free Cashflow Yield | -0.23% |