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
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
