Goldman Sachs has initiated coverage on Radico Khaitan. The firm has a ‘buy’ rating with a target price of Rs 1,144, at 34 percent upside potential from current levels.
The firm has also added the stock to its conviction list. Radico Khaitan is a leader in the vodka business in India, with 45 percent market and volume share. Now they are becoming a competitor in whiskey, brandy, rum and gin as well.
According to Goldman Sachs, the company is steadily improving its cash generation as well as aggressively repaying its debt as well.
Continued market share momentum, EBITDA margins expected to expand to 19 percent by FY25, and the stock trading at close to 28 times its FY23 earnings, are the three reasons why the firm has initiated the coverage on the stock.
Watch the accompanying video of CNBC-TV18’s Nimesh Shah for more details.
To watch other videos in this series, click on the Standout Brokerage Reports tab below.