Moneycontrol PRO
Open App

Buy Radico Khaitan; target of Rs 400: ICICI Direct

ICICI Direct is bullish on Radico Khaitan has recommended buy rating on the stock with a target price of Rs 400 in its research report dated May 29, 2020.

May 29, 2020 / 05:46 PM IST
  • bselive
  • nselive
Todays L/H

ICICI Direct's research report on Radico Khaitan

Radico Khaitan (RKL) reported 15% revenue growth in Q4FY20 to Rs 585 crore. Gross margin declined 400 bps to 48.6% owing to elevated input cost. However, the company reported flat EBITDA margin at 14.1% on account of lower employee, selling and other expense, which declined 66 bps, 220 bps, 340 bps, respectively. Consequently, EBITDA grew 15% YoY to Rs 82.3 crore. Higher depreciation, interest and lower other income led PBT before extraordinary expense to grow 10% to Rs 62.6 crore. Further, exceptional loss of Rs 8.6 crore and loss from associate of Rs 6 crore led net profit to fall 20% to Rs 33 crore.


RKL is poised to enhance its financial performance. We maintain our BUY rating on the stock with a revised target price of Rs 400/share (~18x FY22E EPS).


For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: May 29, 2020 05:46 pm
ISO 27001 - BSI Assurance Mark