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Last Updated on: 25 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Radico Khaitan Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 24, 2024, 9:12 pm

Market Cap 30,570 Cr.
Current Price 2,285
High / Low2,526/1,422
Stock P/E106
Book Value 187
Dividend Yield0.13 %
ROCE13.2 %
ROE11.3 %
Face Value 2.00
PEG Ratio45.28

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Radico Khaitan Ltd

Competitors of Radico Khaitan Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
United Spirits Ltd 94,875 Cr. 1,3051,314/86666.8 97.90.69 %28.7 %21.7 % 2.00
United Breweries Ltd 49,174 Cr. 1,8602,205/1,578104 1600.54 %13.5 %10.1 % 1.00
Tilaknagar Industries Ltd 6,730 Cr. 349370/18237.1 38.60.14 %22.1 %24.8 % 10.0
Som Distilleries & Breweries Ltd 1,981 Cr. 102149/84.520.4 31.80.00 %19.4 %18.4 % 2.00
Radico Khaitan Ltd 30,570 Cr. 2,2852,526/1,422106 1870.13 %13.2 %11.3 % 2.00
Industry Average23,388.38 Cr978.8848.45153.890.31%19.99%18.28%5.88

All Competitor Stocks of Radico Khaitan Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales6895987097578137577617928329549251,1611,079
Expenses5885065976387336656716957538348041,018956
Operating Profit101921111198093909779120121143123
OPM %15%15%16%16%10%12%12%12%9%13%13%12%11%
Other Income12622241311152
Interest55332346912121817
Depreciation14151617161717172024263232
Profit before tax947894101637770765184839877
Tax %22%23%26%24%26%24%26%25%27%25%26%25%26%
Net Profit74606977465852573763627457
EPS in Rs5.514.485.185.743.474.363.884.272.794.734.635.524.25

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales1,2101,3781,4001,6431,6571,7972,0632,3952,3742,8593,1334,119
Expenses1,0201,1821,2201,4521,4441,5261,7132,0231,9652,4572,7753,612
Operating Profit190196180191214270351372409402359506
OPM %16%14%13%12%13%15%17%16%17%14%11%12%
Other Income26343636182613-15201199
Interest718590858169363222132259
Depreciation3539384342414253546571114
Profit before tax1091068799109187286273353335275342
Tax %29%33%22%26%26%34%34%17%23%25%26%25%
Net Profit7771687380123188228271252204256
EPS in Rs5.815.365.085.526.029.2614.1017.0420.2618.8615.2919.13
Dividend Payout %14%15%16%14%13%11%9%12%12%16%20%16%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-7.79%-4.23%7.35%9.59%53.75%52.85%21.28%18.86%-7.01%-19.05%25.49%
Change in YoY Net Profit Growth (%)0.00%3.57%11.58%2.24%44.16%-0.90%-31.57%-2.42%-25.87%-12.04%44.54%

Radico Khaitan Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:12%
5 Years:15%
3 Years:20%
TTM:28%
Compounded Profit Growth
10 Years:13%
5 Years:6%
3 Years:-2%
TTM:32%
Stock Price CAGR
10 Years:40%
5 Years:49%
3 Years:29%
1 Year:60%
Return on Equity
10 Years:12%
5 Years:13%
3 Years:11%
Last Year:11%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:48 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital27272727272727272727272727
Reserves7027548039371,0031,1151,2881,4941,7371,9602,1252,3512,476
Borrowings768904849960799592337400288202754818903
Other Liabilities308332411390392498581540543555762846945
Total Liabilities1,8042,0172,0892,3132,2212,2322,2332,4602,5952,7443,6684,0424,350
Fixed Assets5295705737297046857147438108211,2131,6571,644
CWIP58122201618383032754102
Investments10910898205205205155155155135135135135
Other Assets1,1611,3301,4181,3761,3091,3211,3471,5431,5921,7571,9932,1952,469
Total Assets1,8042,0172,0892,3132,2212,2322,2332,4602,5952,7443,6684,0424,350

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-66137250-3925231630960370221224183
Cash from Investing Activity +46-141-83843-21-7-67-76-108-684-243
Cash from Financing Activity +153-172-87-234-293-2269-183-13448224
Net Cash Flow-5-1-5-42212762111-2122-36

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-578.00-708.00-669.00-769.00-585.00-322.0014.00-28.00121.00200.00-395.00-312.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days131139125136137128114125107969687
Inventory Days116118164202199231270209283234292211
Days Payable73719512912515918314815110211271
Cash Conversion Cycle174185194209211201201187239228277226
Working Capital Days194224214173142143130146147133124110
ROCE %13%12%11%10%10%14%19%18%19%16%12%13%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters40.27%40.27%40.27%40.27%40.27%40.27%40.27%40.26%40.26%40.26%40.26%40.24%
FIIs20.48%19.28%18.35%18.86%18.94%18.63%18.26%18.18%19.01%18.58%18.82%18.60%
DIIs18.61%19.24%20.26%22.85%23.23%23.51%23.76%23.92%23.99%24.72%24.47%24.70%
Public20.64%21.21%21.13%18.01%17.57%17.59%17.71%17.63%16.75%16.45%16.44%16.45%
No. of Shareholders1,22,4841,46,3901,46,9861,29,0771,25,4731,17,0891,07,4651,15,4301,12,8001,11,7811,14,6811,23,741

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Aditya Birla Sun Life Flexi Cap Fund3,014,6492.5454.12,228,9072024-11-2135.25%
Nippon India Small Cap Fund2,228,9070.82335.742,228,9072024-11-210%
Tata Equity P/E Fund - Regular Plan1,470,0003.42221.432,228,9072024-11-21-34.05%
Tata Equity P/E Fund - Regular Plan - Trigger Option A 5%1,470,0003.42221.432,228,9072024-11-21-34.05%
Tata Small Cap Fund1,319,2763.13198.722,228,9072024-11-21-40.81%
HDFC Small Cap Fund - Regular Plan1,181,6630.7177.992,228,9072024-11-21-46.98%
Nippon India ELSS Tax Saver Fund1,110,0001.28167.22,228,9072024-11-21-50.2%
Kotak Multicap Fund1,089,8532.32164.162,228,9072024-11-21-51.1%
DSP Flexi Cap Fund979,5871.56147.562,228,9072024-11-21-56.05%
Bandhan Sterling Value Fund700,0001.46105.442,228,9072024-11-21-68.59%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)19.6116.4819.7020.7517.16
Diluted EPS (Rs.)19.6116.4819.7020.7417.15
Cash EPS (Rs.)27.6320.5923.4524.2920.97
Book Value[Excl.RevalReserv]/Share (Rs.)182.45165.17151.63134.23115.55
Book Value[Incl.RevalReserv]/Share (Rs.)182.45165.17151.63134.23115.55
Revenue From Operations / Share (Rs.)308.01235.11214.55181.04181.75
PBDIT / Share (Rs.)38.5127.5130.6432.1228.53
PBIT / Share (Rs.)30.0022.2125.7928.0824.60
PBT / Share (Rs.)25.5820.5524.8126.4420.42
Net Profit / Share (Rs.)19.1215.2918.5920.2617.04
NP After MI And SOA / Share (Rs.)19.6116.4819.6920.7517.16
PBDIT Margin (%)12.5011.7014.2817.7415.69
PBIT Margin (%)9.749.4412.0115.5113.53
PBT Margin (%)8.308.7411.5614.6011.23
Net Profit Margin (%)6.206.508.6611.189.37
NP After MI And SOA Margin (%)6.367.019.1711.469.44
Return on Networth / Equity (%)10.749.9812.9815.4514.85
Return on Capital Employeed (%)13.9111.2816.2019.7920.03
Return On Assets (%)6.405.929.4610.219.22
Long Term Debt / Equity (X)0.110.120.000.000.00
Total Debt / Equity (X)0.300.310.090.150.25
Asset Turnover Ratio (%)1.050.971.050.931.03
Current Ratio (X)1.721.732.471.981.69
Quick Ratio (X)1.071.071.641.391.24
Inventory Turnover Ratio (X)3.243.063.082.873.46
Dividend Payout Ratio (NP) (%)15.2918.1912.189.638.42
Dividend Payout Ratio (CP) (%)10.6613.769.778.066.85
Earning Retention Ratio (%)84.7181.8187.8290.3791.58
Cash Earning Retention Ratio (%)89.3486.2490.2391.9493.15
Interest Coverage Ratio (X)8.7116.6331.2619.4912.05
Interest Coverage Ratio (Post Tax) (X)5.3210.2419.9713.298.96
Enterprise Value (Cr.)23721.7816532.1611939.327632.633948.04
EV / Net Operating Revenue (X)5.765.264.163.161.63
EV / EBITDA (X)46.0744.9529.1517.7910.36
MarketCap / Net Operating Revenue (X)5.615.084.143.101.47
Retention Ratios (%)84.7081.8087.8190.3691.57
Price / BV (X)9.467.235.854.182.31
Price / Net Operating Revenue (X)5.615.084.143.101.47
EarningsYield0.010.010.020.030.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Radico Khaitan Ltd as of November 25, 2024 is: 2,242.80

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 25, 2024, Radico Khaitan Ltd is Overvalued by 1.85% compared to the current share price 2,285.00

Intrinsic Value of Radico Khaitan Ltd as of November 25, 2024 is: 2,295.30

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 25, 2024, Radico Khaitan Ltd is Undervalued by 0.45% compared to the current share price 2,285.00

Last 5 Year EPS CAGR: 2.34%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (1,441.92 cr) compared to borrowings (659.54 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (1.75 cr) and profit (213.42 cr) over the years.
  1. The stock has a low average ROCE of 13.92%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 156.67, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 211.00, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Radico Khaitan Ltd:
    1. Net Profit Margin: 6.2%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 13.91% (Industry Average ROCE: 19.99%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 10.74% (Industry Average ROE: 18.28%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 5.32
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.07
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 106 (Industry average Stock P/E: 48.45)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.3
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Radico Khaitan Ltd. is a Public Limited Listed company incorporated on 21/07/1983 and has its registered office in the State of Uttar Pradesh, India. Company’s Corporate Identification Number(CIN) is L26941UP1983PLC027278 and registration number is 027278. Currently Company is involved in the business activities of Distilling, rectifying and blending of spirits; ethyl alcohol production from fermented materials. Company’s Total Operating Revenue is Rs. 2868.01 Cr. and Equity Capital is Rs. 26.73 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Beverages & DistilleriesRampur Distillery Bareilly Road, Rampur Uttar Pradesh 244901info@radico.co.in
http://www.radicokhaitan.com
Management
NamePosition Held
Dr. Lalit KhaitanChairman & Managing Director
Mr. Abhishek KhaitanManaging Director
Mr. Amar SinghWhole Time Director
Dr. Raghupati SinghaniaIndependent Director
Mr. Tushar JainIndependent Director
Mr. Sharad JaipuriaIndependent Director
Ms. Sushmita SinghaIndependent Director
Mr. Pushp JainIndependent Director

FAQ

What is the latest intrinsic value of Radico Khaitan Ltd?

The latest intrinsic value of Radico Khaitan Ltd as on 25 November 2024 is ₹2242.80, which is 1.85% lower than the current market price of ₹2,285.00.

What is the Market Cap of Radico Khaitan Ltd?

The Market Cap of Radico Khaitan Ltd is 30,570 Cr..

What is the current Stock Price of Radico Khaitan Ltd as on 25 November 2024?

The current stock price of Radico Khaitan Ltd as on 25 November 2024 is 2,285.

What is the High / Low of Radico Khaitan Ltd stocks in FY 2024?

In FY 2024, the High / Low of Radico Khaitan Ltd stocks is 2,526/1,422.

What is the Stock P/E of Radico Khaitan Ltd?

The Stock P/E of Radico Khaitan Ltd is 106.

What is the Book Value of Radico Khaitan Ltd?

The Book Value of Radico Khaitan Ltd is 187.

What is the Dividend Yield of Radico Khaitan Ltd?

The Dividend Yield of Radico Khaitan Ltd is 0.13 %.

What is the ROCE of Radico Khaitan Ltd?

The ROCE of Radico Khaitan Ltd is 13.2 %.

What is the ROE of Radico Khaitan Ltd?

The ROE of Radico Khaitan Ltd is 11.3 %.

What is the Face Value of Radico Khaitan Ltd?

The Face Value of Radico Khaitan Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Radico Khaitan Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE