Radico Khaitan Detail
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Radico Khaitan is in portfolio of Dolly Khanna. He is one of the top investors in India. The company belongs to Distillery sector.
As per the Company website it is one of the oldest and the largest manufacturers of Indian Made Foreign Liquor (IMFL) in India. Earlier it was known as Rampur Distillery it has emerged as a major bulk spirits supplier and bottler to other spirit manufacturers.
The company has a total capacity of over 157 million litres and operates 28 bottling units, spread across the country. It also has international presence and exports its products to more than 85 countries.
It has four millionaire brands in its portfolio; 8 PM Whisky, Magic Moments Vodka, Contessa XXX Rum and Old Admiral Brandy.
The company’s robust brand portfolio also includes Rampur Indian Single Malt Whisky, Jaisalmer Indian Craft Gin, Magic Moments Verve Vodka, Morpheus Premium and Morpheus Blue Super Premium Brandy, 8PM Premium Black Whisky, After Dark Whisky, Pluton Bay Rum, Regal Talon Whisky, Whytehall Brandy, 1965 – The Spirit of Victory Rum to name a few.
I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.
Radico Khaitan Stock Performance
The stock performance can be divided into three parts. First part is from year 2002 to 2008 when it touched 200 mark fro 8 INR in year 2002 giving around 25 times return in eight years.
After global crisis the stock did not perform for next decade or so. It did not touch the 200 mark till year 2017. This was long consolidation period for the stock giving nightmare to investors.
After long consolidation the stock moved past 200 and traded above 400. This is regular dividend paying Company.
Radico Khaitan My Opinion
Radico Khaitan is a Distillery Company. It is one of the oldest distillery Company in India. It is mainly in business of Indian made liquor. At first Company was in business of bottling and supplying spirits.
Over the years Company reinvented itself and started selling its own brands. Some of the brands from Company have performed well over the years. But it has not performed inline with other major players in this niche which is disheartening for the investors of this Company.
The sector is often referred by investors as Sin sector. Many analyst often cite that this is evergreen sector and rightly so. People will continue to consume these items in future as well. There is huge market for branded and non branded liquids both.
So sector will have demand in future as well. The only challenge will be State bans and individual company performance. It is oldest Company and still surviving giving positive returns to investors meaning management is courage to withstand testing times.
I have not yet invested in this sector. This has nothing to do with Sector. It is my individual choice not to invest in Sin sector.
In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.