Sharekhan's research report on Radico Khaitan
Magic Moments Vodka sales volume is growing at 20-25% and is likely to reach 6 million cases in FY2024. Recently-launched Pink Vodka will incrementally add to volumes in the coming years. Strong growth in premium brands, industry-leading growth in white spirits and scale-up of recent launches will drive 15-18% volume growth in P&A category. Exit margins of 14-15% by FY2024; likely to improve by 300-350 bps in next three years. Debt to fall sharply by FY2026.
Outlook
We reiterate a Buy on Radico Khaitan (RKL) with a revised price target of Rs. 1,965. Growth led by premiumsation and focus on leaner balance sheet makes it a strong play in domestic liquor space.
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