Liquor company Radico Khaitan Ltd. (NS:) has seen its share price zoom over 48% in the last two months. It has moved from Rs 610.25 on May 31 to Rs 904 on July 30.
The company reported its earnings for Q1 FY22 recently. Net profit jumped 35.7% to Rs 59.83 crore while net sales went up 47.3% to Rs 602.76 crore compared to Q1 FY21.
The pandemic has caused liquor companies to push premium brands. People are staying home and are drinking more expensive alcohol. They are choosing to buy better quality liquor and that is something that Radico Khaitan has capitalized on.
Abhishek Khaitan, MD of Radico Khaitan said, “As restrictions are lifted and normalcy resumes, month-on-month volumes indicate a positive trend and we are confident of an improved industry performance, led by Prestige & Above segment, in the coming quarters.”
The company has become the largest exported of IMFL (Indian Made Foreign Liquor) in India.
In an interview to ET Prime, Amar Sinha, COO, Radico Khaitan, said, “The onslaught of the pandemic led consumers towards premiumisation. Manufacturers catering to the lower-priced segment of alcohol suffered because their margins were impacted adversely. Companies are focussing on brands which give them higher margins, with limited availability at retail shelves and limited opportunities to sell, companies are trying to make up the losses as much as they can.”
The above news was originally posted on in.investing.com by By Aditya Raghunath