Radico Khaitan (RADICO)
Fast GrowerFairStock Score: 53/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹4,650 |
| Market Cap | ₹62,301.82 Cr |
| P/E Ratio | 88.5 |
| ROCE | 16.24% |
| ROE | 19.25% |
| Dividend Yield | 0.15% |
| Profit Growth | 62.1% |
| Debt/Equity | 0.21 |
| Sales Growth | 19.5% |
| Free Cash Flow | ₹192 Cr |
| Promoter Holding | 40.21% |
| 52-Week Range | ₹2,500 — ₹4,737.25 |
| Sector | Beverages |
| Book Value | ₹247.63 |
Strengths
- High ROE of 19.25% and ROCE of 16.24% show strong capital efficiency.
- Healthy balance sheet with debt/equity of 0.21, Altman Z-Score of 7.12, and Piotroski F-Score of 8/9.
- Robust top-line growth: sales up 26.48% and 5-year revenue CAGR of 15.33%.
- Profit growth of 66.45% and promoter holding of 40.21% reflect momentum and aligned ownership.
Concerns
- Extreme valuation: P/E of 66.87, EV/EBITDA of 98.74, and P/B of 15.92 are far above conservative estimates.
- Negative margin of safety of -533.10% versus the Graham Number of ₹418.50.
- Weak cash generation relative to price: FCF of ₹192 Cr against a market cap of ₹35,475 Cr, with dividend yield of only 0.15%.
- PEG ratio of 2.16 suggests the market has already priced in high growth, leaving little room for disappointment.
AI Analysis
At ₹3,199, Radico Khaitan is being priced as if it already owns the future. A P/E of 66.87 and EV/EBITDA of 98.74 leave virtually no room for error, while the Graham Number of ₹418.50 and DCF value of ₹765.56 suggest the market is paying more than four times a conservative estimate of intrinsic worth. The margin of safety is deeply negative, about -533%. Benjamin Graham would call this speculation, not investment. That said, the business quality is real: ROE of 19.25%, ROCE of 16.24%, and a clean balance sheet with debt/equity of only 0.21. The Piotroski F-Score of 8/9 and Altman Z of 7.12 point to financial strength. Sales grew 26.48% and profit grew 66.45%, on top of a 5-year revenue CAGR of 15.33%. This is a fast grower with tangible tailwinds. But the price already capitalizes the growth: the PEG ratio is 2.16, and the free cash flow of ₹192 Cr is tiny against a market cap of ₹35,475 Cr. I am reminded that a great company can still be a terrible investment if bought at the wrong price. At current levels, I would wait, not chase. I need a price that offers a genuine margin of safety, or evidence that the growth and cash conversion can justify the premium for many years. For now, Radico is a good business at an unforgiving price.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer