Radico Khaitan Gets High-Conviction 'Buy' From HDFC Securities — Here's Why

Uttar Pradesh has recently released a new excise policy for FY26, highlighting a series of reforms, which in our view, shall benefit mainstream liquor companies. Radico is likely to be a significant beneficiary, since UP contributes to 25% of its domestic volumes..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Institutional Equities.Good times are here to stay; maintain high-conviction Buy on Radico Khaitan Ltd.Uttar Pradesh has recently released a new excise policy for FY26, highlighting a series of reforms, which in our view, shall benefit mainstream liquor companies. Radico is likely to be a significant beneficiary, since UP contributes to 25% of its domestic volumes. The following reforms are likely to boost volume growth in the state: allowing the sale of low unit packs (60 ml and 90 ml) for both the regular and premium segments, which shall drive conversion from country liquor to regular Indian made foreign liquor and encourage trials in the premium segment;creation of a composite shop distribution network—permitting the sale of beer, liquor and wine from a single store, which will increase the overall distribution reach. Moreover, the existing liquor retailers will have to wind up their business and reapply in the e-lottery system; andreorganising supply chain of liquor, thereby freeing up working capital for liquor companies..However, in the near term, liquor companies may witness demand headwinds, as existing retailers de-stock their inventory. Incrementally, we were disappointed via the fact that the anticipated price hikes for UPML (UP manufactured Liquor) did not come through which could further strain profitability (margins in UPML are around 5-6%)..Click on the attachment to read the full report:.Cummins, Aurobindo, Alkem Labs, Bajaj Electricals, HG Infra, PSP Projects, NOCIL Q3 Review — HDFC Securities .DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Radico Khaitan Gets High-Conviction 'Buy' From HDFC Securities — Here's Why

The brokerage continues to maintain Radico as a high-conviction Buy with a target price of Rs 2,600 (52 times FY27 earnings per share).

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Radico Khaitan Gets High-Conviction 'Buy' From HDFC Securities — Here's Why

The brokerage continues to maintain Radico as a high-conviction Buy with a target price of Rs 2,600 (52 times FY27 earnings per share).

Choose a plan

Follow Us

DOWNLOAD THE APP