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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RADICO KHAITAN | Q3 HIGHLIGHTS
a. Total IMFL volume* of 8.36 Million Cases (+15.3%)
b. Prestige & Above brands volume of 3.67 Million Cases (+17.7%)
c. Prestige & Above brands contribution to the IMFL volumes of 50.9% (vs. 49.9%)
d. Prestige & Above brands net sales of ₹647.9 Cr (+24.7%)
e. Prestige & Above brands contribution to the Total IMFL sales value of 72.5% (vs. 71.3%)
Management Guidance
Despite consumption challenges, the Indian spirits industry, led by premium brands, saw strong growth.
In Q3 FY25, we achieved impressive performance, with premium brands growing robustly and regular brands recovering after nine quarters of decline.
We continue to elevate Indian brands globally, drive growth through premiumization, and explore new opportunities, confident in the long-term potential of the Indian spirits market and Radico Khaitan’s growth prospects.
Radico Khaitan achieved a 15.3% YoY IMFL volume growth in Q3 FY25, driven by a 17.7% increase in the Prestige & Above category.
Premium brand sales and new product development remain strong. Luxury & Semi-Luxury brands reached net sales of Rs. 100 Cr in Q3 and Rs. 250 Cr in 9M FY25.
We expect these segments to exceed Rs. 500 Cr in FY26, reflecting strong demand domestically and internationally.
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Radico Khaitan | Management Interview
- Management expects a 15% positive YoY growth in Prestige & Above and luxury segment for the next 2-3 years
- Post strong set of Q3FY25 numbers company is going forward they expect to have overall volume growth of 8-9%.
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Radico -21.pdf (120.2 KB)
Micro detailing on the presentation file!!!
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Just sharing my learnings here…
Summary of Q1FY26 Concall :
- Radico is expecting to be debt free by FY27.
- Gross Margin improved YoY.
- The India-UK FTA Agreement has been finalized which will benefit the company as it expects import of scotch to exceed INR 400 crores in three years.
- Q1FY26 recorded the highest ever volume growth in any quarter for Radico Khaitan.
- The marketing spends usually hovers around 7-8% and the company markets mainly in digital space and airports wherein they have dedicated spaces for marketing.
- The company didn’t stock up in Maharashtra which witnessed a excise policy change in the month of June.
- The company’s strategy is to think global, act local.
- The management has given a guidance of 125-150 basis points expansion YoY on account of premiumization which was earlier 100 bps.
- Management expects Morpheus Whiskey to be dominant player in the coming years.
- The overdue from Telangana is INR 90 crores which is lowest among the industry.
- After Dark Whiskey was like a sleeping giant in the stable. It regained momentum after the company reinvented it with new packaging and feel with upgradation in the blend.
- The capex to be in the range of INR 150-160 crores which will mainly be spent on brand and malt.
- Maharashtra excise policy is little bit negative for the overall industry.
- The company is very confident about its brands and says that its luxury brands are still in the nascent stage, so there is more room for growth.
- The working capital has improved mainly because of passing of excise duty to the wholesaler in UP excise policy.
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In the 2024 Annual Report the useful life of building was 3 to 90 years whereas in the 2025 Annual report, the useful life of building is changed 3 to 60 years…
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Radico Khaitan acquiring 47.5% stake in D’YAVOL Spirits B.V. and D’YAVOL Spirits Private
Limited, a Dutch company.
The first launch from this partnership would be a luxury tequila…
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Radico - Update.pdf (215.1 KB)
Two new version introduce on today
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Summary of Q3FY26 Concall:
1) Highest-ever quarterly performance:
- Radico reported its highest-ever quarterly performance with net revenue of INR 1547 crores, 9.75 million cases volume, and EBITDA of INR 265 crores.
- Gross Margins improved 350 bps QoQ, out of which 225 bps improvement was due to raw material price softening and 125 bps was a result of premiumization.
2) Serving on Flights:
- Rampur Indian Single Malt became the only Indian spirits brand to be served on Air India international flights.
3) Debt-free status:
- The company is on the path to becoming debt-free by 2027.
- The cash that would be generated after debt repayment would mostly be used for dividend payout.
4) Setting up subsidiary:
- The company is setting up a 100% wholly-owned subsidiary in Scotland, which helps them in matured malt supply chain.
5) MML Policy:
- Due to the Maharashtra Made Liquor (MML) Policy, country liquor is gaining traction. It can only be accessed by the local companies that have Maharashtrian as a partner or of ownership origin. As a result, the industry witnessed a decline of 20%.
- Radico is launching in MML through their joint venture, Radico NV Distilleries Maharashtra Limited, which is expected to be in the market by this month.
6) Market share and dues:
- The market share in Andhra Pradesh increased to 26% from 15%(in Q3FY25).
- The old dues in Telangana will be cleared by next month.
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