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RADICO: Premium Spirits Expansion Will Support Margins And Undervalued Upside

Update shared on 08 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
20.2%
7D
-5.1%

Analysts have modestly revised their price target on Radico Khaitan, nudging it to ₹3,499.89 as they maintain confidence in the company’s stable discount rate, robust mid teens revenue outlook and resilient profit margins that support a premium future valuation multiple.

What's in the News

  • Launch of Rampur 1943 Virasat Indian Single Malt, a premium whisky made from six row Indian barley and matured in American Bourbon Barrels with a Ruby Port Pipe finish, reinforcing Rampur Distillery's legacy and global single malt positioning (company announcement).
  • Introduction of 1965 Spirit of Victory Espresso Coffee Premium Dark Rum, a coffee infused premium rum initially rolled out in Uttar Pradesh with expansion to Jharkhand and Haryana, targeting younger consumers and the growing coffee spirits trend (company announcement).
  • Unveiling of the final two editions in the Rampur Jugalbandi series, #7 and #8, at the TFWA World Exhibition in Cannes 2025, completing the limited edition global single malt collection and elevating Rampur's international brand visibility (company announcement).
  • Launch of Magic Moments Jamun SpicyMint vodka under the Flavours of India range, with planned rollout beyond Uttar Pradesh into key states like Maharashtra, Goa, Karnataka, and Rajasthan, strengthening Radico Khaitan's innovation led play in flavoured vodka (company announcement).
  • Board meeting scheduled for October 29, 2025, to consider unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025. The update could provide greater clarity on earnings momentum and margin trends (company filing).

Valuation Changes

  • Fair Value: Unchanged at approximately ₹3,499.89 per share, indicating no revision to the core intrinsic value estimate.
  • Discount Rate: Steady at about 12.76 percent, reflecting no shift in perceived risk profile or cost of capital assumptions.
  • Revenue Growth: Essentially unchanged at around 16.63 percent, indicating expectations of sustained mid teens topline expansion.
  • Net Profit Margin: Stable at roughly 11.69 percent, indicating no material change in margin outlook or profitability assumptions.
  • Future P/E: Maintained at about 64.78x, indicating continued conviction in a premium valuation multiple supported by growth and brand strength.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.