Buy Radico Khaitan, target price Rs 1450: ICICI Direct

ICICI Direct has buy call on Radico Khaitan with a target price of Rs 1450. The current market price of Radico Khaitan Ltd. is Rs 1240.75. Time period given by analyst is one year when Radico Khaitan Ltd. price can reach defined target.

Radico Khaitan Ltd., incorporated in the year 1983, is a Mid Cap company (having a market cap of Rs 16524.08 Crore) operating in Beverages - Alcoholic sector.

Radico Khaitan Ltd. key Products/Revenue Segments include Alcoholic Products, Bottles (PET), Scrap, Royalty Income, Others, Jaivik Khad, Export Incentives and Liquor for the year ending 31-Mar-2021.



Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 710.58 Crore, up 17.51 % from last quarter Total Income of Rs 604.70 Crore and up 12.11 % from last year same quarter Total Income of Rs 633.80 Crore. Company reported net profit after tax of Rs 69.20 Crore in latest quarter.

Investment Rationale
Radico has the distinction of being among very few domestic players that have over the years entered and generated brand equity in the prestige and above liquor segment. The company is looking at expanding its whisky portfolio and is hopeful of getting a good hold in the premium whisky segment in two years.

Promoter/FII Holdings
Promoters held 40.27 per cent stake in the company as of 30-Sep-2021, while FIIs owned 20.06 per cent, DIIs 18.64 per cent.