Fundamental Analysis

RADICO KHAITAN LTD

Ticker : 532497 
BUY: Rs 1,127.60
Target: Rs 1,260

Radico Khaitan is among the oldest and one of the largest man-ufacturers of IMFL in India. The company has a total owned capacity of 157 million litres and operates 32 bottling units (5 owned & 27 contracted) spread across the country. The con-solidated quarterly financials state that the company recorded a healthy 11.78 per cent increase in the net sales and operating income, which stood at Rs 3,077.19 crore for Q3CY21 as compared to Rs 2,752.99 crore reported for Q3CY20. The operating profit for Q3CY21 came in at Rs 113.21 crore, mar-ginally up by 2.01 per cent from Rs 110.98 crore in Q3CY20. Net profit contracted by 4.43 per cent from Rs 72.41 crore in Q3CY20 to Rs 69.20 crore in Q3CY21. Liquor companies are reaping benefits from rebounding demand with the easing of COVID-19 restrictions. The company’s strengthening balance sheet and robust volume growth improve earning visibility for the upcoming quarters. Hence, we recommend BUY.