Sharekhan's research report on Radico Khaitan
We expect P&A volumes to clock an 18% volume CAGR during FY25-27, taking P&A volume contribution to 52% by FY27 aided by scale-up of recent launches, new launches in the luxury and premium segments and distribution expansion within India and overseas. Premiumisation, cost optimisation, stable/declining raw material prices and operating leverage to aid a ~100 bps annual rise in OPM for 2-3 years. With strategies in place, we expect RKL’s revenues and PAT to post an 18% and 41% CAGR, respectively, over FY25-27.
Outlook
We maintain a Buy rating on Radico Khaitan Ltd (RKL) with a revised PT of Rs. 3,090. Stock trades at 67x/50x its FY26E/FY27E earnings, respectively.
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