Crafted for connoisseurs!
Sip with a twist – focusing on product innovation
Radico Khaitan is one of the oldest and largest manufacturers of Indian Made Foreign Liquor (IMFL) with net revenue of INR48b and volume of 31m cases in FY25 (P&A was ~15mn cases). The company, formerly known as Rampur Distillery Company, commenced operations in 1943 as a major bulk spirits supplier. Radico is known for its brands: 8PM, Magic Moments, Royal Ranthambore, Rampur Single Malt, After Dark, Morpheus, Contessa and Jaisalmer.
Radico has been one of the best-performing stocks among consumer names, with 25x return over the last 10 years and 8x return over the last five years. The valuation multiple has seen a notable re-rating over the last five years, with consistent outperformance of its P&A portfolio. Radico’s P&A portfolio clocks ~15m cases compared to the P&A industry size of ~200m cases and the total IMFL industry size of ~400 million cases. The company is further gearing up to expand its portfolio by launching products in the premium and luxury range where industry cases are high. We believe this portfolio expansion will help Radico expand its target user base and improve its trade confidence on execution, which increases the acceptance level for new products. We estimate 16%/22%/30% revenue/EBITDA/APAT CAGR during FY25-28E. We value Radico at 60x P/E on Jun’27E EPS to derive a TP of INR3,000.
