Buy Tilaknagar Inds; target of Rs 650: Choice Institutional Equities

Choice Institutional Equities's report on Tilaknagar Inds

TLNGR delivered a strong Q2FY26 performance with volumes up 16.3% YoY to 3.4 Mn cases (+6.5% QoQ), driving net revenue of INR 3,982 Mn, a 6.2% YoY growth (9.3% adjusted for subsidy). TLNGR gained market share across key states and expanded its portfolio with the launch of Mansion House Whisky in Odisha, Telangana and Kerala, and Monarch Legacy Edition Brandy in select duty-free and southern markets. Additionally, Mansion House Whisky and Mansion House Lemon Flavoured Brandy won “Product Debut of the Year” awards in their respective categories at the “2025 Spiritz Conclave & Achievers” Awards.

Outlook

We revise our estimate to include Imperial Blue’s Net Revenues of INR 30.67 Bn. However, as per our channel checks, we lower our margin forecast from 15.6% to 11.3% on a consolidated basis for FY28E. Therefore, we continue to maintain that Net Income will expand by a CAGR of 19% over FY25–FY28E. Hence, we maintain our target price of INR 650 using the DCF approach. Our TP implies a FY27E/FY28E PE of ~62x / 42x.