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Investing.com - Jefferies initiated coverage on Radico Khaitan Ltd (NS:RDCK) with a Buy rating and a price target of INR3,590.00 on Monday.
The research firm highlighted Radico’s position as a growth leader in the alcoholic beverage sector, crediting the company’s strategic initiatives including its successful Magic Moments vodka brand and luxury Indian Single Malt brand Rampur.
Jefferies noted Radico’s advantage from its concentration in Uttar Pradesh and Andhra Pradesh markets, where favorable regulations are driving industry growth, along with the company’s expansion into niche luxury gin and premium brandy and rum segments.
The firm expects Radico to deliver 25% compound annual growth rate in Prestige & Above revenue, with margin expansion resulting in a sector-leading 37% earnings per share CAGR over FY25-28e.
While acknowledging that Radico’s valuations are expensive, Jefferies believes they should sustain given the company’s strong growth prospects.
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