(Reuters) -Indian alcoholic beverage maker Radico Khaitan reported higher fourth-quarter profit on Tuesday, driven by strong demand for premium products such as its ‘Rampur’ whisky.
The company reported a 71% rise in consolidated net profit at 920.7 million rupees (about $11 million) for the three months ended March 31.
Revenue from operations rose 15% to 44.85 billion rupees.
For further results highlights, (click here).
KEY CONTEXT
Radico has increased its focus on higher-priced premium segment in recent years, which includes brands such as ‘Rampur’ single malt whisky and ‘Jaisalmer’ brand of gin.
Radico’s sales from its premium brands – which contributed to 63% of overall revenue – increased 22% in the quarter.
Favourable liquor policies in states such as Karnataka, which reduced taxes on premium alcohol, and Andhra Pradesh, which allowed private retailers to sell spirits, also boosted demand.
PEER COMPARISON
Valuation Estimates (next 12 Analysts’ sentiment
(next 12 months)
months)
RIC PE EV/EBI Revenue Profit Mean No. of Stock to Div
TDA growth (%) growth (%) rating* analyst price yield
s target** (%)
Radico Khaitan 67.09 40.63 12.03 42.11 Buy 6 0.99 0.12
United Spirits 61.83 42.92 11.93 18.02 Buy 12 0.99 0.42
United Breweries 66.85 43.30 13.62 51.55 Hold 11 1.03 0.47
Tilaknagar 31.18 19.93 15.14 -13.29 Strong 1 0.63 0.17
Industries Buy
* The mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JANUARY TO MARCH STOCK PERFORMANCE
— All data from LSEG
— $1 = 84.3470 Indian rupees
(Reporting by Kashish Tandon in Bengaluru; Editing by Eileen Soreng)
