Radico Khaitan Soars 1500% in 8 Years: Why This Multibagger Stock is a Top Pick in India’s Booming Liquor Market

The Indian liquor industry is booming right now, thanks to more disposable income and a young population spending more on luxuries like alcohol. This is helping companies in the sector grow as people buy more premium drinks.

Remarkable Stock Performance

Radico Khaitan, a major player in the premium liquor market, has seen a big boost in sales, especially in the high-end segment. Over half of its revenue comes from premium and luxury brands, which has driven up volumes significantly.

The company’s stock price surged by 70% in 2023 and has kept rising this year. It recently hit an all-time high of ₹1,910 per share, marking a remarkable 411% gain over the past four years and 1500% over eight years. The stock has closed positive for 35 out of the last 48 months.

Strong Growth in Premium Segments

Radico Khaitan reported a 14.3% increase in volume growth for its premium category in the quarter ending June, now making up 43.4% of total volumes. Although the regular category didn’t perform as well, the company is optimistic about strong growth in premium volumes for the coming year.

The company’s Rampur brand, which sells bottles for up to ₹500,000 ($5,955.39), highlights the growing demand for luxury drinks. Radico has also launched new products under its Rampur, Sangam, and Jaisalmer brands, with prices ranging from ₹4,000 to over ₹10,000.

Impressive Sales and Profit Figures

In the first quarter of FY2025, Vodka sales jumped by 21.9% year-on-year, with 1.9 million cases sold, pushing net sales to over ₹300 crore. Radico’s Magic Moments brand now holds 60% of the vodka market in India and the company has a 64% share in the super-premium brandy segment. Net profit also rose by 20.7% to ₹76.3 crore.

Positive Outlook from Analysts

Elara Capital has maintained its “buy” rating on Radico Khaitan’s stock, with a target price of ₹2,000 per share. The brokerage remains confident in the stock due to strong growth in the premium segment and expected margin increases. They predict a healthy earnings growth of 25.8% from FY25 to FY27.

IMFL Market Growth Prospects

The Indian IMFL (Indian Made Foreign Liquor) market is set to keep growing, driven by more people looking for premium drinks and evolving consumer tastes. Although there are challenges like raw material inflation, the industry is adapting with price adjustments, helping maintain premium sales.

Euromonitor International forecasts that IMFL volumes will hit 511 million cases by 2028, growing at a rate of 5.6% annually from 2024 to 2028, with the industry’s value expected to grow by 11.0%. White spirits, particularly vodka and gin, are projected to grow even faster due to the rising popularity of cocktails.