Espresso shot of the day – Radico Khaitan Ltd up by 14.81 percent

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Espresso shot of the day – Radico Khaitan Ltd up by 14.81 percent

October 12, 2021
Espresso shot of the day – Radico Khaitan Ltd up by 14.81 percent

RADICO KHAITAN LTD. 1173.20 (+14.81 %) BSE – INE944F01028 | 12TH OCTOBER 2021


Radico Khaitan Limited (RKL) is one of the oldest and largest manufacturers of Indian Made Foreign Liquor (IMFL) in India. Formerly known as Rampur Distillery, RKL commenced its operations in 1943 and over the years has emerged as a major bulk spirits supplier. Today, it is one of the most admired liquor brands across the country. With over 75 years of experience in spirits making, Radico Khaitan has evolved from being just a distiller of spirits to a leading IMFL company with a highly reputable brand portfolio. Driven by the vision of the promoters, Radico Khaitan Limited started its own brands in 1998 with the launch of 8PM Whisky. From building a strong manufacturing platform and developing a robust pan-India distribution network to expanding its premium brand portfolio, Radico has come a long way. RKL is one of the few companies in India to have developed its entire brand portfolio organically, with in-house capabilities. This is a true testament to the company’s focus on innovation, R&D strength and understanding of customer preferences. The company currently has two distilleries: Rampur Distillery in Rampur (Uttar Pradesh) and Radico NV Distilleries Maharashtra Limited, a joint venture with RNV in Aurangabad (Maharashtra). The company has a total capacity of over 157 million litres and operates 28 bottling units, spread across the country.

Recent Drivers

  • On Oct 11, 2021, Radico Khaitan launched two new luxury alcoholic drinks, Magic Moments Dazzle Vodka and Royal Ranthambore Heritage Collection – Royal Crafted Whisky in line with its premiumization strategy.
  • Radico Khaitan is expecting to face “some headwinds” in prices of extra neutral alcohol (ENA) if the Centre pushes on its announced target of blending 10% fuel-grade ethanol with petrol by 2022. The company—as a de-risking initiative and also in line with its premiumisation strategy—is moving towards a grain-based ENA, which is “impacted to a lesser extent” by the ethanol blending policy.
  • Radico Khaitan recommended dividend of Rs 2.4 per equity share. The dividend would be paid after Oct 3, 2021.
  • On Aug 20, 2021, Radico Khaitan approved the acquisition of 100% equity shares of Radico Spiritzs India with immediate effect, thereby making Radico Spiritzs a wholly owned subsidiary of the company.
  • On Jun 1, 2021, Radico Khaitan reported an over twofold jump in consolidated net profit at Rs 73.53 crores for the fourth quarter ended March 2021. The company had posted a consolidated net profit of Rs 32.67 crores in the Jan-Mar period a year ago.
  • On Jun 1, 2021, revenue of the company from operations increased 30.42% to Rs 2,881.19 crores as compared to Rs 2,209.11 crores in the corresponding quarter of the previous fiscal.
(Sources: NDTV, BSE India, Hindu Business Line, Business Standard, The Economic Times)


Technical Force*

  • S&P BSE 500 month till date gain up by 2.86%
  • Traded on all-time-high value: 1,215
  • 3 months avg. NSE volume: 7,66,196
  • Quantity traded: 3,02,708 | Deliverable quantity: 44,321 (14.64%)
  • Stock price has jumped more than 200% from one-year-low level: 391.15 (Oct 20, 2020)
  • Daily RSI (14) is in Overbought territory today
  • 52-week-high: 1,215 | 52-week-low:  391.15

Key Pivot  (Yearly)

R4

R3

R2

R1

PP /FIB PP

S1

S2

S3

S4

Pivot Point

-

  818.07

615.03

554.07

387.03

290.07

123.03

26.07

    -

Fibonacci Pivot

651.03

550.19

487.88

447.75

387.03

326.31

286.19

223.88

123.03


Today’s Close

1173.20

SMA

BSE

10 DAY

956.04

20 DAY

930.07

50 DAY

905.54

200 DAY

677.97


Some Key Ratios (Source: BSE)

Market Cap: 15,682.61 crores

PE: 54.74

OPM%: 3.43

ROE%: 16.23

Promoters holding%: 40.29

Prev. Close: 1021.9

*Chart And Technical Force data taken from the Binge desktop app.

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Chandresh Khona
by Chandresh Khona

Product Offerings Head

A teacher, writer, travel buff and now Espresso's Product Offerings Head. Ten years here has allowed me to lead the digital team at Sharekhan. My true passion lies in stock market charts.