ICICI Direct's research report on Radico Khaitan
Radico Khaitan (RKL) in Q4FY21 reported volume growth of 8% (ex-AP impact, double digit volume growth). For FY21, Radico’s volumes have degrown 8% (compared to a mid-teen de-growth for liquor industry). In Q4FY21, Prestige and Above segment volumes (28% of overall IMFL volumes) grew 15%. RKL reported revenue growth of 19% YoY to Rs 695 crore. EBITDA grew 23% YoY to Rs 101 crore driven by improved margin profile. EBITDA margin expanded 50 bps from 14.1% to 14.6% due to gross margin improvement and cost rationalisation. Lower tax rate and exceptional expense of Rs 8 crore in the base quarter enabled the company to report 78% YoY growth in net profit to Rs 74 crore.
Outlook
We maintain our BUY rating on the stock with a revised target price of Rs 750/share (~22x FY23E EPS, earlier Rs 580).For all recommendations report, click here
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