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Investing.com - Ambit Capital initiated coverage on Radico Khaitan Ltd (NS:RDCK) with a Buy rating and a price target of INR3,601.00, according to a research note released Friday.
The research firm cited Radico Khaitan ’s established position in the spirits industry and its proven ability to build brands organically across different price segments as key factors supporting the positive outlook.
Ambit Capital highlighted the company’s strategic shift toward Prestige & Above (P&A) products, with value share increasing from 34% in FY15 to approximately 48% in FY25, and projections to reach 56% by FY28.
The firm expects this product mix shift to drive a 370 basis point expansion in EBITDA margins over the FY25-28 period, while noting that Radico Khaitan’s strengthened balance sheet provides additional earnings potential.
Ambit Capital’s price target of INR3,601 represents a multiple of 53 times the company’s projected FY28 earnings per share, reflecting expectations that Radico Khaitan will outperform industry growth due to its superior state and product mix along with faster execution capabilities.
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