BSE:532497

Stock Analysis Report

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Executive Summary

Radico Khaitan Limited manufactures and trades in alcohol and alcoholic beverages primarily in India.


Snowflake Analysis

Excellent balance sheet with proven track record.

Share Price & News

How has Radico Khaitan's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532497's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.1%

532497

2.9%

IN Beverage

2.0%

IN Market


1 Year Return

33.5%

532497

-1.4%

IN Beverage

-5.4%

IN Market

Return vs Industry: 532497 exceeded the Indian Beverage industry which returned -1.4% over the past year.

Return vs Market: 532497 exceeded the Indian Market which returned -5.4% over the past year.


Shareholder returns

532497IndustryMarket
7 Day3.1%2.9%2.0%
30 Day11.3%5.5%7.0%
90 Day21.6%15.4%18.6%
1 Year34.0%33.5%-1.3%-1.4%-3.5%-5.4%
3 Year202.4%199.1%35.7%35.2%1.0%-3.8%
5 Year367.7%354.2%0.8%0.5%25.6%15.9%

Price Volatility Vs. Market

How volatile is Radico Khaitan's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Radico Khaitan undervalued compared to its fair value and its price relative to the market?

22.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 532497 (₹380.6) is trading above our estimate of fair value (₹26.34)

Significantly Below Fair Value: 532497 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 532497 is poor value based on its PE Ratio (22.2x) compared to the IN Beverage industry average (10.7x).

PE vs Market: 532497 is poor value based on its PE Ratio (22.2x) compared to the Indian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 532497's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532497 is overvalued based on its PB Ratio (3.3x) compared to the IN Beverage industry average (1.3x).


Next Steps

Future Growth

How is Radico Khaitan forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.6%

Forecasted Food, Beverage & Tobacco industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Radico Khaitan has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Radico Khaitan performed over the past 5 years?

29.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532497 has high quality earnings.

Growing Profit Margin: 532497's current net profit margins (9.4%) are higher than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: 532497's earnings have grown significantly by 29.4% per year over the past 5 years.

Accelerating Growth: 532497's earnings growth over the past year (17.9%) is below its 5-year average (29.4% per year).

Earnings vs Industry: 532497 earnings growth over the past year (17.9%) exceeded the Beverage industry -11.7%.


Return on Equity

High ROE: 532497's Return on Equity (14.9%) is considered low.


Next Steps

Financial Health

How is Radico Khaitan's financial position?


Financial Position Analysis

Short Term Liabilities: 532497's short term assets (₹14.2B) exceed its short term liabilities (₹8.4B).

Long Term Liabilities: 532497's short term assets (₹14.2B) exceed its long term liabilities (₹964.2M).


Debt to Equity History and Analysis

Debt Level: 532497's debt to equity ratio (25.9%) is considered satisfactory.

Reducing Debt: 532497's debt to equity ratio has reduced from 102.1% to 25.9% over the past 5 years.

Debt Coverage: 532497's debt is not well covered by operating cash flow (15%).

Interest Coverage: 532497's interest payments on its debt are well covered by EBIT (10.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Radico Khaitan current dividend yield, its reliability and sustainability?

0.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 532497's dividend (0.53%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.69%).

High Dividend: 532497's dividend (0.53%) is low compared to the top 25% of dividend payers in the Indian market (2.73%).


Stability and Growth of Payments

Stable Dividend: 532497's dividends per share have been stable in the past 10 years.

Growing Dividend: 532497's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.7%), 532497's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.4yrs

Average board tenure


CEO

Lalit Khaitan (76yo)

no data

Tenure

₹72,986,000

Compensation

Dr. Lalit Khaitan has been the Chairman and Managing Director of Radico Khaitan Ltd., since February 20, 2003. Dr. Khaitan is leading Radico Khaitan Ltd. for more than 27 years. He has 44 years of industry ...


CEO Compensation Analysis

Compensation vs Market: Lalit's total compensation ($USD971.56K) is above average for companies of similar size in the Indian market ($USD358.64K).

Compensation vs Earnings: Lalit's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Lalit Khaitan
Chairman & MDno data₹72.99m0.21% 104.4m
Abhishek Khaitan
MD & Executive Director7.42yrs₹72.63m0.064% 32.5m
Krishan Singh
Whole Time Director & Director of Operations17.5yrs₹23.38m0.018% 9.0m
Raghupati Singhania
Non-Executive Independent Director17.5yrs₹125.00kno data
Karna Mehta
Non-Executive Independent Director16.75yrs₹165.00kno data
Tushar Jain
Independent Additional Director0.92yrno datano data
Sharad Jaipuria
Independent Additional Director0.92yrno datano data
Sarvesh Srivastava
Non-Executive Independent Director6.17yrs₹295.00kno data
Sushmita Singha
Independent Women Director1.25yrsno datano data

7.4yrs

Average Tenure

68yo

Average Age

Experienced Board: 532497's board of directors are considered experienced (7.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Radico Khaitan Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Radico Khaitan Limited
  • Ticker: 532497
  • Exchange: BSE
  • Founded: 1943
  • Industry: Distillers and Vintners
  • Sector: Food, Beverage & Tobacco
  • Market Cap: ₹50.489b
  • Shares outstanding: 133.53m
  • Website: https://www.radicokhaitan.com

Number of Employees


Location

  • Radico Khaitan Limited
  • Plot No. J-1
  • Block B-1
  • New Delhi
  • Delhi
  • 110044
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532497BSE (Mumbai Stock Exchange)YesEquity SharesININRJun 2003
RADICONSEI (National Stock Exchange of India)YesEquity SharesININRJun 2003

Biography

Radico Khaitan Limited manufactures and trades in alcohol and alcoholic beverages primarily in India. It provides Indian made foreign liquor, alcohol, country liquor, etc. The company offers whisky, brandy, rum, and white spirits under the After Dark Whisky, Contessa Rum, Jaisalmer Indian Craft Gin, Magic Moments Vodka, Magic Moments Verve Vodka, Morpheus Brandy, Morpheus Blue Brandy, and Old Admiral Brandy brands. It also provides its products under the Pluton Bay Rum, Rampur Indian Single Malt Whisky, Regal Talon Whisky, 1965 – The Spirit of Victory Rum, 8PM Whisky, 8PM Premium Black Whisky, Magic Moments Electra, Morpheus Blue XO Premium Brandy, Whytehall Premium Brandy, Regal Talons Whisky, and After Dark Premium Whisky brands. In addition, the company supplies bulk spirits; and offers bottling services to other spirit manufacturers. It exports its products to approximately 70 countries worldwide. The company was formerly known as Rampur Distillery. Radico Khaitan Limited was founded in 1943 and is based in New Delhi, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/10 12:37
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.