Clarification from the company…they are saying it ‘lack of accuracy’.
Company guiding expansion of margin because of premium products.
Concall Highlights Q1
Stock already 13% correction in last 1 month. No clarity in tax evasion issue…just wait and watch
McDowell loses market share to Radico.
Last Quaterly results
Feel like buying but the tax evasion conflict amount is too big 1000cr +, when company is earning only 200cr+ yearly.
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Some kye insights of Q2 FY 24 Presentation and Concall:
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Sitapur Plant Commissioned: During the quarter, we successfully commissioned the new 350 kiloliters per day grain ENA distillery at Sitapur. The plant is now running at optimum capacity and has achieved key operating parameters. The commissioning of the Sitapur plant not only secures long-term ENA supplies but also positions us strongly to capitalize on the future growth opportunities in the branded business with enhanced bottling capacities. Together with the Rampur campus, the ENA production from Sitapur plant will be able to support the branded business growth for the next six to eight years.
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P & A brands : we continue to expand the distribution of Rampur and
Jaisalmer in India. Rampur is now available in over 10 states and Jaisalmer is available in 20 states. With Rampur, we have surpassed FY23 volumes in the first half of FY24.Capitalizing on the growth in the white spirits space and our vodka
market leadership, we are planning to launch a unique and premium pink vodka made from 100% natural ingredients under the Magic Moments umbrella. We are quite excited about this product and confident that it will take Magic Moments portfolio to new highs.
Prestige & Above category now account for 47.1% of IMFL volume as compared to 37.9% in Q2 FY23. The percentage of P&A is slightly higher due to significant degrowth in the regular category. Improvement in IMFL realization is due to the combination of price increases and continued premiumization.
**The end target of the management in next 3 years down the line to reach55% - 60% under this segment. **
- Margin Commentary: As I said that margin from here onwards will continue to improve. We already said that every year, the margin improvement trajectory will
be seen. By three years’ time, it should be late teens kind of margins. That is what we are expecting.
Expected margin somewhere 16% + in future.
- Export Business: How has been the performance of the export segment and for Radico is now the export segment bigger than its largest state or not?
Answer: Well, in terms of exports, we’ve been doing well. We are, in fact, one of the largest exporters of IMFL from India. And we are seeing increasing acceptance of our brands, especially the luxury portfolio across the world. There have been a few issues in certain markets because of the local currency situation. But I think overall, we continue to keep growing.
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Press Release dated November 23, 2023, regarding the launch of Magic Moments
Remix Pink Vodka to cater to the growing demand of the coloured and flavoured beverage Alco category.
fb3bcfd9-21f2-4ce0-bb11-185709dbea30.pdf (bseindia.com)
Latest Investor presentaion 08.12.2023
fdd634dd-4543-41d9-b7f8-c121e87dd42b.pdf (bseindia.com)
Gives the more current insights
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Considering recent rally in this stock it has given good returns ,but as it said u need to have a sound exit strategy ,on basis of this logic such a stock after reaching at 100 PE should be exited at current price or should wait for the vstop to get negative in order to take a sell call depending on technical analysis.
Plz give some guidance regarding this any senior members who practice technofunda approach.
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While the premium segment continued to see strong positive traction, demand trends in the regular category remained below expectations owing to a general up-trending by certain consumers and a slowdown at the lower end. Given our
premiumization focus, our Prestige & Above category brands today account for 46% of our IMFL sales volume and 69% of IMFL sales value. In this context, it is heartening to note that the Magic Moments brand family has achieved 6.3 million case sales and crossed the milestone of Rs. 1000 Crore in sales value, growing at 25% over last year.
During FY2024, while the prices of certain packaging materials have been stable, the cost of grain, ENA, and glass has been volatile. This has led to significant pressure on our gross margins. However, with our premium product mix and price increases, we have been able to offset the pressure of raw material prices. With the expectations of a normal monsoon and better crop yield, we are seeing early signs of softening grain prices. We believe that the worst of the input cost increases is
behind us, and we expect to benefit from any tailwinds in raw material prices in FY2025
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