India's Radico Khaitan posts higher Q1 profit on growing premium alcohol sales
BENGALURU, Aug 7 (Reuters) -India's Radico Khaitan RADC.NS reported a higher first-quarter profit on Wednesday on increasingdemand 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) forthe 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 months) | Estimates (next 12 months) | Analysts' sentiment | ||||||||
RIC | PE | EV/EBITDA | Revenue growth | Profit growth | Mean rating* | No. of analysts | Stock to price target** | Div yield (%) | ||
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
Radico Q1 vs peers https://tmsnrt.rs/3WUtNhe
Reporting by Manvi Pant in Bengaluru; Editing by Sonia Cheema
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