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Last Updated : Aug 14, 2018 10:37 AM IST | Source: Moneycontrol.com

Buy Radico Khaitan, target Rs 600: Prashanth Tapse

We expect the company would go debt free in next 2-3 years, hence stocks looks attractive at current levels with Target price of Rs 600, upside 40 percent, says Prashanth Tapse of Mehta Group.

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Prashanth Tapse

Mehta Group

Radico Khaitan | CMP: 429 | Target: 600+ | Return: 40%

We like Radico Khaitan Ltd (RKL) as it is one of the largest manufacturers of Indian Made Foreign Liquor Ltd (IMFL) in India and RKL is one of the few companies who have developed its entire brand portfolio organically. RKL’s brand portfolio includes Magic moments vodka which leads the vodka industry with more than 50 percent market share followed by Morpheus Brandy which has 60 percent share and others brands are like After Dark whisky, 8PM whisky, Contessa Rum.

RKL Q1FY19 results were ahead of estimates in terms of revenue as well as earnings driven by robust volume growth of 19 percent on YoY, improvement in EBITDA margins and lower interest expenses. We expect the company would go debt free in next 2-3 years, hence stocks looks attractive at current levels with Target price of Rs 600, upside 40 percent.

(Disclaimer: The author is Associate VP at Mehta Group: The views and investment tips expressed by investment experts/broking houses/rating agencies on Moneycontrol are their own, and not that of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions)
First Published on Aug 14, 2018 10:37 am
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