Radico Khaitan, the Magic Moments vodka maker, is expected to deliver sector-leading growth in its premium portfolio, led by strong innovation and execution, according to Jefferies.
The global brokerage firm believes that India's alcoholic beverage industry is entering a multi-year premiumisation cycle, and this trend is most evident in vodka, where Radico Khaitan is the market leader.
The company's product portfolio in vodka includes the Magic Moments Vodka, Magic Moments Remix which has flavored options like green apple, orange, lemon, and chocolate, and Magic Moments Verve, a super-premium, platinum-filtered line.
Jefferies expects Radico Khaitan to deliver sector-leading growth in its premium portfolio, led by its strong innovation, execution, and a supportive regulatory environment.
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Additionally, premium-mix and India-UK Free Trade Agreement (FTA) benefits are also expected to drive continued margin expansion for the company, Jefferies said.
The brokerage firm maintained a ‘Buy' rating on Radico Khaitan shares, with a target price of Rs 5,200 apiece, implying an upside potential of over 11% from Monday's closing price.
Radico Khaitan Share Price Performance
Radico Khaitan share price has delivered strong returns, with the stock rising 14% in one month, and surging 66% in six months. The stock has jumped 64% in one year, and has spiked 180% in two years. Radico Khaitan shares have delivered multibagger returns of 408% over the past five years.
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