Radico Khaitan shares headed for news highs? Check latest target prices

A host of analysts from domestic brokerages are positive on Radico Khaitan Ltd shares as they believe up to 16 per cent upside in the brewery company based on the technical parameters of the company. They see a sustained breakout on the technical charts of the company, which may not only sustain, but may push the stock to new highs.
 

Shares of Radico Khaitan settled at Rs 1846.60 on Friday at BSE, rising more nearly 5 per cent for the session. The total market capitalization of the company stood at Rs 24,700 crore for the day.
 

Radico Khaitan has given a W-shaped recovery on the daily chart, said Rupak De, Senior Technical Analyst at LKP Securities. "Besides, the price has given a consolidation breakout on the daily timeframe. A positive divergence is visible in the daily RSI, suggesting a positive momentum. On the higher end, it could move towards Rs 2,050, while support is placed at Rs 1,749."
 

Shares of Radico Khaitan have rallied nearly 50 per cent in the last one year, while the stock is up 15 per cent in 2024. However, the stock has gained 62 per cent from its 52-week low at Rs 1,140.95 hit in October 2023. The stock is marching towards its 52-week high of Rs 1,882.05 hit in December 2023.
 

Radico Khaitan has been consolidating in a broader range of Rs 1,650-1,800 on short term charts while broader trend remains intact with a bullish move as stock can be seen rising with formation of lower bottom pattern on daily interval, said SMC Global Securities in a recent report.
 

"Last week a fresh breakout was observed on charts above the Symmetrical triangle pattern. This upward movement is supported by a substantial increase in trading volume, suggesting the potential for further price gains. Therefore, one can buy the stock in range of Rs 1,820-1,840 for the upside target of Rs 2,135-2,150 levels with stop loss below Rs 1,650 levels," it added.
 

Not just technical analysts, even the fundamental experts are positive on the stock, following a strong quarterly performance for the April-June 2024 period on the back of strong premiumization and solid volumes growth in select categories. However, the stock has seen a sharp run up post Q1 earnings.
 

Radico Khaitan reported a 13.3 per cent year-on-year (YoY) increase in net profit at Rs 77.4 crore for the first quarter that ended June 30, 2024. Liquor maker's revenue from operations increased 19.1 per cent YoY to Rs 1,136.5 crore, while its EBitda grew 24.8 per cent YoY to Rs 149.1 crore, with Ebitda margins improving to 13.1 per cent for the quarter.
 

Radico remains our top pick in the alcobev universe, helped by robust volume growth momentum in P&A and continued margin expansion, which will lead to a healthy earnings CAGR, said Elara Capital. "The stock is currently trading at fair valuation. we reiterate 'buy' with a higher target price of Rs 2,000." it said.
 

Radico Khaitan’s performance was driven by P&A (prestige & above) brands with volume and realization growth. Non-IMFL performance improved with the Sitapur plant turning operational, said Antique Stock Broking. "In the near term, we expect strong demand in P&A brands to continue," it said with a 'buy' tag and a target price of Rs 1,996 on the stock.
 

Its Q1FY25 performance beat estimates on all fronts. Revenue growth was mainly driven by volumes in P&A segment and growth in the non-IMFL business. It launched Rampur Asava, Sangam, and Jaisalmer Gold Edition in India during the quarter, Said Sharekhan with a target price of Rs 1,995 and a buy rating.