(Reuters) -India’s Radico Khaitan reported a 73% jump in second-quarter profit on Wednesday, helped by a sharp uptick in demand for liquor housed in the affordable ‘regular’ segment.
The company reported consolidated net profit of 1.4 billion Indian rupees ($15.93 million) for the three months ended September 30, compare to 806.6 million rupees a year ago.
Revenue from operations rose 29.4% to 50.57 billion rupees.
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KEY CONTEXT
Demand for premium or high-priced liquor in India remains strong, powered by wealthy customers whose spending has largely defied a broader slowdown in urban demand. However, in the second quarter, volumes in the ‘regular’ segment registered sharp growth of 79.6%, after nine quarters of de-growth, Radico said, outshining volumes in the Prestige segment that still grew at a healthy 21.7% year-on-year.
The sharp rise in the regular segment was primarily due to liquor policies turning more favorable in Andhra Pradesh, a key state for Radico, the company said.
PEER COMPARISON
Estimates (next 12 months) Analysts’ sentiment
RIC PE EV/EBI Revenue Profit Mean # of Stock to Div
TDA growth growth rating analyst price target yield
(%) (%) s (%)
Radico Khaitan Ltd 70.77 44.21 18.15 43.33 BUY 9 1.01 0.13
United Spirits Ltd 53.49 37.20 -27.94 11.67 BUY 10 0.87 0.89
United Breweries Ltd 63.97 38.28 12.99 36.29 HOLD 11 0.91 0.55
Tilaknagar Industries Ltd 44.46 34.22 2.85 STRONG 1 0.87 0.20
BUY
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The 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 TO SEPTEMBER STOCK PERFORMANCE
— All data from LSEG
— $1 = 87.8950 Indian rupees
(Reporting by Ananta Agarwal in Bengaluru; Editing by Ronojoy Mazumdar)
