BENGALURU (Reuters) – India’s Radico Khaitan 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 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 49.60 30.11 17.11 43.51 Buy 5 0.89 0.18
United Spirits 61.37 42.17 10.48 12.51 Buy 11 1.03 0.64
United Breweries 69.28 45.42 12.24 45.76 Hold 13 1.01 0.51
Sula Vineyards 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
(Reporting by Manvi Pant in Bengaluru; Editing by Sonia Cheema)
