Radico Khaitan Is A High Conviction 'Buy' Says HDFC Securities, Upgrades Target Price; Here's Why

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.We conducted comprehensive channel checks across India to assess underlying demand trends and recently met with the management to understand medium-term prospects. Based on these findings, we maintain Radico Khaitan Ltd. as a high-conviction Buy with a target price of Rs 2,700 (55x FY27 EPS).We expect the company to deliver revenue/Ebitda/profit after tax compound annual growth rate of 16/26/35%, respectively, over FY24-27, driven by the following factors:favorable policy interventions in high-salience states of Karnataka/Andhra Pradesh—reduction in excise duties (Karnataka) and a new liquor policy favoring private players (Andhra Pradesh);the regular Indian Made Foreign Liquor segment seeing an uptick after many quarters of subdued volumes due to favorable base and policy interventions. Additionally, price hikes in the upcoming liquor policy for the UP state (25% of overall domestic volumes) will be an important event to watch for improved profitability, which has hit its trough;improved salience from the high-margin luxury/premium segment, as management doubles the malt capacity;moderation in the raw material index, along with management initiatives on cost optimization, such as the commencement of the Sitapur distillery, shifting to PET bottles from glass in the regular segment, and the removal of mono cartons, all supporting margins.Click on the attachment to read the full report:.Top Stock Pick For 2025 - 'Buy' SignatureGlobal For An Upside Of 50% Says Motilal Oswal; Here's Why.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 Is A High Conviction 'Buy' Says HDFC Securities, Upgrades Target Price; Here's Why

Good times are here to stay says HDFC Securities and maintains high-conviction Buy on Radico Khaitan.

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