Despite a recent fall in its stock price, Radico Khaitan Ltd continues to stay on a strong growth path driven by its focus on premium products, according to Amit Khurana of Dolat Capital.
Radico Khaitan’s shares have declined nearly 18% so far this year and were recently trading slightly lower at around ₹2,655 on the BSE. However, Khurana remains optimistic about the alcoholic beverages (alcobev) sector, calling it a strong segment within discretionary consumption.
In an interview with Business Today, he noted that while everyday consumer goods are currently underperforming, alcobev companies have continued to perform well. He specifically highlighted Radico Khaitan as a preferred pick, saying the company is clearly focused on premiumisation. According to him, although the stock valuations were earlier high, they have now come down to more comfortable levels.
Khurana also pointed out that recent state budgets have been supportive of the alcobev sector. He said government policies are becoming more favourable, with a growing focus on promoting higher-quality and more responsible drinking, which is benefiting companies across the industry.
The company’s flagship brand, Magic Moments Vodka, has shown strong growth, with sales reaching 8 million cases this financial year, up from 7.1 million cases last year.
Apart from Radico Khaitan, Khurana also sees value in United Spirits Ltd, whose shares have fallen over 7% this year and are currently trading near ₹1,300.
Looking ahead, Khurana believes consumer spending could improve once global economic and geopolitical uncertainties ease. He added that sectors like quick-service restaurants (QSR) and other discretionary categories, including companies like Restaurant Brands International Inc, could see renewed interest as consumer confidence returns.
