Radico Khaitan, Allied Blenders, And United Spirits Share Prices Surge On Jefferies' 'Buy' Ratings
Share price of United Spirits Ltd., Radico Khatian Ltd., and Allied Blenders & Distillers Ltd.rose on Monday after bullish commentary by Jefferies which intiated coverage on the companies with a 'Buy' rating for all of them.
Allied Blenders Ltd. rose 2.34% to hit an intraday high of Rs 558.45 apiece, Radico Khaitan rose 1.15% to hit an intraday high of Rs 2,932 apiece and United Spirits rose 1% to reach an intraday high of Rs 1,322.80 per share on Monday.
Allied Blenders has risen nearly 55% in the past 12 months, while Radico Khaitan rose nearly 38% in the same time period. Meanwhile, United Spirtis has fallen over 15% in the past 12 monts as per data recorded by Bloomberg.
The brokerage believes, "the spirits category offers premiumisation-led strong growth potential, with double-digit top-line compound annual growth rates across companies and meaningful room to expand margins."
Jefferies initiated coverage on United Spirits with a 'Buy' rating and target price of Rs 1,570. For Radico Khaitan, the brokerage has given a target price of Rs 3,590 with a 'Buy' rating, and similarly for Allied Blenders, the brokerage has a 'Buy' rating with a target price of Rs 620.
The brokerage has kept Radico Khaitan as the top pick in the sector in its alcoholic beverage universe. For United Spirits, the brokerage noted that it offers favourable risk-reward after the stock correction. However, for Allied Blenders, it said that the company is a dark horse, with meaningful upside, but execution holds the key.
"We see a meaningful margin expansion opportunity, as inflation stabilises and premiumisation continues, along with reduction in import duty on scotch post the India UK FTA. Margin uplift would be higher for Indian companies given their low base versus UNSP where Diageo brands are capped at 10%," the brokerage noted for the sector.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
-
'Never Seen This Level Of Negativity': Sandeep Tandon Says The Next Rally May Be Closer Than You Think
Veteran investor Sandeep Tandon says foreign selling is easing, large-caps are due a comeback and mid-caps are crowded, while he turns positive on gold, power and pharma this Diwali.
-
Indians Stay With Family, Not In Hotels | The Reason Why
India still lacks enough clean, reliable and affordable hotels for budget-conscious travellers.
-
The Economic Imperative: Analysing The Material Driving Force Behind India-Canada Strategic Reset
This economic complementarity is further reinforced by deep institutional investment ties and talent mobility, which form the bedrock of the bilateral framework.
