Radico Khaitan Shares Surge 2.17% on Luxury Vodka Launch and Jefferies' Bullish Outlook

Khaitan , a prominent player in the Indian spirits industry, saw its shares climb 2.17% to ₹2,933.30 following two significant developments: the launch of a luxury vodka brand and a bullish initiation by Jefferies.

Market Performance

The stock opened at ₹2,904.00, up from its previous close of ₹2,870.90, and reached an intraday high of ₹2,947.00. Trading was robust, with volumes reaching 1.10 lakh shares, amounting to ₹32.31 crore in value.

Luxury Vodka Launch

Khaitan introduced 'The Spirit of Kashmyr', India's first homegrown luxury vodka, in the Maharashtra and Goa markets. This premium offering is priced between ₹2,800.00 and ₹4,000.00, positioning it in the high-end segment of the spirits market. The brand has already gained recognition, winning the 'Best Luxury Vodka' award within a month of its launch in Uttar Pradesh.

Jefferies' Bullish Stance

Adding to the positive sentiment, Jefferies initiated coverage on Khaitan with a 'Buy' rating. The brokerage set a target price of ₹3,500.00, suggesting a potential upside of 19% from current levels. Jefferies named Khaitan as its top pick among spirits companies, projecting a compound annual growth rate of over 35% in earnings per share.

Broader Sector Outlook

Jefferies' optimism extends to the wider spirits sector. The brokerage also initiated 'Buy' ratings on United Spirits with a target price of ₹1,570.00 and Allied Blenders with a target of ₹620.00.

Growth Prospects and Risks

The brokerage anticipates double-digit revenue growth and margin expansion in the spirits category. However, it also highlighted potential risks, including regulatory challenges in key states and possible commodity inflation, particularly in ethanol and glass packaging.

Conclusion

The combination of a successful product launch and positive analyst coverage has boosted investor confidence in Khaitan. As the company continues to expand its premium offerings and capitalize on market opportunities, it remains to be seen how these developments will translate into long-term financial performance.