Reduce Radico Khaitan, target price Rs 900: HDFC Securities

HDFC Securities has reduce call on Radico Khaitan with a target price of Rs 900.0. The current market price of Radico Khaitan is Rs 956.2.

Radico Khaitan, incorporated in the year 1983, is a Mid Cap company (having a market cap of Rs 12248.53 Crore) operating in Beverages - Alcoholic sector.

Radico Khaitan key Products/Revenue Segments include Alcoholic Products, Bottles (PET), Scrap, Royalty Income, Others, Jaivik Khad, Export Incentives and Liquor for the year ending 31-Mar-2021.

Financials
For the quarter ended 30-06-2022, the company has reported a Consolidated Total Income of Rs 3188.17 Crore, down -1.19 % from last quarter Total Income of Rs 3226.58 Crore and up 427.23 % from last year same quarter Total Income of Rs 604.70 Crore. Company has reported net profit after tax of Rs 58.27 Crore in latest quarter.

Investment Rationale
HDFC Securities remains positive on Radico’s constant product innovation and success in the luxury portfolio. However, with overall slowdown in consumption, the demand for mid-price P&A and regular portfolio will be the key monitorables, it said, adding that capex execution and industry demand remain key monitorables for the stock. It values Radico at 28x P/E on Jun-24 EPS to arrive at a TP of Rs 900.