Radico Khaitan Q4 Results Review - A Tad Soft, Upbeat Outlook: Dolat Capital

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..Dolat Capital Report.Radico Khaitan Ltd.’s Q4 FY24 result was a tad soft vs. expectations (yet healthy) driven by payment challenges in a state and annual policy related hiccups. On soft base, revenue/gross profit/Ebitda/adjusted profit after tax grew by +30/31/51/52% YoY and FY24 ended on a healthy note with +31/33/41/25% YoY growth.FY24-26E earnings are expected to be strong (~41% CAGR) driven by-healthy growth in P&A,growth in Popular on favourable base,fullyear benefit from backward integration (versus H2 in FY24),softening of raw material and financial leverage playing out. .The anticipated raw material softening in FY25/26 could result in significant earning delta but is not fully factored. Growth slowdown in P&A is a key risk to earnings and thus the PE multiple. We increase our FY25/26E EPS by 17/8% to factor softer raw material. Valuations at 56/45 times FY25/26E EPS partly capture business optimism but as growth pans out, we expect earnings, roll-forward and re-rating led price uptick to continue. Radico Khaitan has seen time correction since the last results. In backdrop of impending triggers, we upgrade to ‘Accumulate’ from Reduce with revised target price of Rs 1,920 at 50 times FY26E earnings per share (earlier Rs 1,780 at 50 times FY26E EPS)..Click on the attachment to read the full report:.Biocon Q4 Results Review - Biosimilar Off-Take, Lower R&D Spending Drive Earnings: Motilal Oswal.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 Q4 Results Review - A Tad Soft, Upbeat Outlook: Dolat Capital

Steep raw material inflation impacts margins, but green-shots visible

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