(Reuters) – India’s Radico Khaitan, which makes the popular “Magic Moments” brand of vodka, reported a 24% rise in second-quarter profit on Thursday on increasing demand for its premium alcohol.
The company’s consolidated net profit rose to 806.6 million rupees ($9.60 million) for the three months ended Sept. 30.
Its revenue from operations rose 9.5% to 39.07 billion rupees.
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KEY CONTEXT
Alcohol makers generally have multiple brands in two major segments called “premium” and “regular”. Rising incomes in India’s expanding urban population has fuelled volume growth for liquor makers, particularly in the premium segment, according to analysts.
Radico Khaitan sells brands such as Rampur Indian Whiskey and After Dark in its premium segment, aside from Magic Moments. Its Rampur brand sells bottles for as high as 500,000 rupees (around $5,960) in India where the per capita income is about $2,485.
In August, the company said it expected a 20% growth in revenue in the fiscal year ending March 2025.
PEER COMPARISON
Valuation (next 12 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBITDA Revenue Profit Mean # of Stock to price Div yield
growth (%) growth (%) rating* analysts target** (%)
Radico Khaitan 67.36 39.80 13.65 37.38 STRONG BUY 6 1.08 0.14
United Spirits 64.74 43.63 10.09 13.47 BUY 10 1.03 0.61
United Breweries 65.00 42.85 13.60 43.77 HOLD 13 0.95 0.52
Sula Vineyards 32.82 18.02 7.33 7.81 BUY 2 0.77 2.04
* 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
JULY-SEPTEMBER STOCK PERFORMANCE
— All data from LSEG
($1 = 84.0390 Indian rupees)
(Reporting by Aleef Jahan; Editing by Janane Venkatraman)
