India's Radico Khaitan posts higher Q1 profit on growing premium alcohol sales

United Spirits

07/08/2024 14:58

BENGALURU, Aug 7 (Reuters) - India's Radico Khaitan  RADC.NS  reported a higher first-quarter profit on Wednesday
on increasing demand for its premium alcohol that includes single malt whisky.
    The 'Magic Moments' vodka maker's consolidated net profit rose 13% to 773.8 million rupees ($9 million) for the three
months ended June 30. 
    For further results highlights, click (Full Story).
    
    KEY CONTEXT 
        India's expanding urban population has fuelled volume growth for liquor makers, driven by rising incomes. 
  
        Additionally, analysts said that easing costs of key raw materials, such as barley, as well as lower packaging
expenses boosted the bottomlines of peers like United Spirits  UNSP.NS  during the quarter.
    However, restrictions on liquor consumption due to the national elections capped sales in this period, they added.
  
    
    PEER COMPARISON 
    
                                   Valuation (next 12     Estimates (next 12    Analysts' sentiment              
                                   months)                months)                                                
                      RIC          PE     EV/EBITDA       Revenue     Profit    Mean     No. of   Stock to       Div
                                                          growth      growth    rating*  analyst  price          yield
                                                                                         s        target**       (%)
 Radico Khaitan        RADC.NS     49.60  30.11           17.11       43.51     Buy      5        0.89           0.18
 United Spirits        UNSP.NS     61.37  42.17           10.48       12.51     Buy      11       1.03           0.64
 United Breweries      UBBW.NS     69.28  45.42           12.24       45.76     Hold     13       1.01           0.51
 Sula Vineyards        SULA.NS     37.43  20.62           8.68        9.54      Buy      2        0.86           1.77
 
    * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
    ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above
the PT
    
    APRIL-JUNE STOCK PERFORMANCE
    
    
    -- All data from LSEG IBES
    -- $1 = 83.9222 Indian rupees
   

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Radico Q1 vs peers    https://tmsnrt.rs/3WUtNhe
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 (Reporting by Manvi Pant in Bengaluru; Editing by Sonia Cheema)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))