Radico Khaitan Limited

Consumer Defensive — Beverages - Wineries & Distilleries · NSE

₹4,473.40+₹24.40 (+0.55%)

DalalBaazaar Score

74 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:26 pm

Understanding the Business

Company site ↗

The 60-second version of Radico Khaitan Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Radico Khaitan Limited engages in the manufacture and trading of Indian made foreign liquor (IMFL), country liquor, and other alcoholic products in India, Ghana, Nigeria, Sudan, the United Arab Emirates, and internationally.

IndustryBeverages - Wineries & Distilleries

SectorConsumer Defensive

Employees1,543

Annual revenue₹6,004 Cr

How does it make money?

Turns over ₹6,004 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 1,543 employees supports ₹3.89 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.89 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 24.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE51.0%

What is the outlook?

18 analysts covering the stock expect revenue to grow about 15.2% and earnings to grow about 21.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+15.2%

Est. earnings growth+21.6%

Analysts18

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +93% while net margin moved +42% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+93%

Margin effect+42%

DalalBaazaar Score

74/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 85.2x is demanding — it needs sustained high growth to justify
✓ P/E is 21% below its own historical median of 108.4x — cheap by its own standards
✗ P/B of 18.06x is a steep premium to book

Quality vs. Valuation

Company Quality

80/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

42/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

85.2x

3Y Median

108.4x

40 monthly readings · mean 111.9x · range 73.0x–168.1x

Sector Median

43.3x

median of 4 sector peers

🟢Current valuation is approximately 21% below its 3y median of 108.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 97% above the peer median of 43.3x.

vs. its own history

Cheap

108.4x median over 40 months · -21%

vs. sector peers

Expensive

43.3x median of 4 peers · +97%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

58.5x

PEG

2.13

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 12.3% to 17.3% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 10.0% to 18.2%.
Return on capital is rising
ROCE has improved from 11.9% to 24.0%.
High return on capital employed
ROCE of 24.0% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.15x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 24.0% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 12.3% to 17.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 21% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹498 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 97% above the peer median. That premium needs a reason that persists, or it closes.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 18% a year✓ 24.6% CAGR
Latest reported year was 11.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 15%✓ 17.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹498 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 21%✓ 24.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 2 neutral · 2 weak

Market Cap

₹59,939 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

85.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

18.06x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹52.53

Profitable

Profitable on a per-share basis

ROE

18.2%

Strong

Strong capital efficiency

ROCE

24.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.15x

Low

Conservative leverage

Revenue Growth (YoY)

11.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

76.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.20%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹498 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

54.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

18.3%

Good

Healthy core-business profitability

Net Margin

11.3%

Good

Strong bottom-line conversion

Current Ratio

1.92

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.50

Defensive

Steadier than the market

52W Range Position

88%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

4466.5 / 4512.6

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

45.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,104 Cr	₹4,098 Cr	₹4,810 Cr	₹6,004 Cr	+24.6%
EBITDA	₹383 Cr	₹526 Cr	₹679 Cr	₹1,036 Cr	+39.4%
EBITDA Margin	12.3%	12.8%	14.1%	17.3%	—
PAT (Net Profit)	₹220 Cr	₹262 Cr	₹346 Cr	₹604 Cr	+40.0%
EPS	₹16.48	₹19.61	₹25.82	₹45.12	+39.9%
ROE	10.0%	10.7%	12.6%	18.2%	—
ROCE	11.9%	14.1%	17.4%	24.0%	—
Total Debt	₹754 Cr	₹1,031 Cr	₹1,103 Cr	₹799 Cr	+2.0%
Free Cash Flow	-₹495 Cr	-₹73 Cr	₹182 Cr	₹498 Cr	—

🟢 Revenue has grown at 24.6% a year over 3 years.

🟢 EBITDA has grown at 39.4% a year over 3 years.

🟢 EBITDA Margin has risen from 12.3% to 17.3% over 3 years (+4.9 pts).

🟢 PAT (Net Profit) has grown at 40.0% a year over 3 years.

🟢 EPS has grown at 39.9% a year over 3 years.

🟢 ROE has risen from 10.0% to 18.2% over 3 years (+8.3 pts).

🟢 ROCE has risen from 11.9% to 24.0% over 3 years (+12.1 pts).

🟡 Total Debt has been broadly flat over 3 years (2.0% a year).

🟢 Free Cash Flow has turned positive, from -₹495 Cr to ₹498 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,972 Cr

Total Liabilities

₹1,656 Cr

Cash & Equivalents

₹70 Cr

Operating Cash Flow

₹743 Cr

Capex

-₹245 Cr

Shareholding (proxy)

Institutional Holding

32.9%

Insider Holding

43.0%

Corporate Actions

Next Earnings

27 Oct 2026

Dividend Rate

₹9

Ex-Dividend Date

24 Jul 2026

Analyst Consensus

Recommendations

17 Buy · 2 Hold · 1 Sell

Target Price (Mean)

₹4,875.7

+9.0% vs CMP

Target Range

₹3,700 – ₹5,550

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

2 mixed4 general

Radico Khaitan (NSEI:RADICO) Stock Price

Simply Wall Street, 13 Oct

Radico Khaitan Q4FY26 Concall Transcript: FY27 Guidance, Brand Growth & Margin Targets

scanx.trade, 18 Oct

Radico Khaitan shares gain up to 3% as JM Financial sees 16% upside

Moneycontrol.com, 25 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Magic Moments Vodka Maker Radico Khaitan To Lead Growth In Premium Portfolio, Says Jefferies; Sees Upto 11% Upside

NDTV Profit, 18 Aug

Radico Khaitan Share Price Rise: Price Action and Valuation

Univest, 09 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Radico Khaitan soars 5%, hits new high; stock up 64% from March low

Business Standard, 06 Jul

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Risk

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you.

All 5 tripwires holding · see Key things to watch ↑