Radico Khaitan: Premiumization Driving the Next Phase of Growth

🔵 Radico Khaitan's investment case is increasingly centered on premiumization rather than volume growth. Management is targeting 13–15% revenue growth in FY27, supported by strong momentum in its Prestige & Above portfolio and luxury brands such as Rampur, Jaisalmer Gin, and Royal Ranthambore. Continued margin expansion could drive earnings growth ahead of revenue growth over the next few years. ⚪️ With a current EPS of ₹45.1 and a P/E of ~81x, the stock appears expensive on trailing earnings. However, if EPS rises to ₹55–58 in FY27 as margins improve and premium brands scale up, the forward P/E moderates to around 64–67x. The key monitorables remain premium segment growth, luxury brand traction, and EBITDA margin expansion, which could support further re-rating over the medium term. 📈