ABOUT THE COMPANY
Radico Khaitan is one of India's oldest and largest liquor manufacturers. Formerly known as Rampur Distillery which was established in 1943. It was only in 1999, that Radico decided to launch and market its own brands, thereby embarking on a period of phenomenal growth. To further boost its production capacity of bottled and branded products, the company has tied up with bottling units in various parts of the country.
ABOUT THE FINANCIALS
The promoters have now hiked their stake in the company from 37.64% to 39.97%. The company has expanded its trade pattern to enhance the revenue generation by entering into premium liquors. Instead of getting into low margin-high volume business the company is opting for higher margins low volume. For Q3FY11, on a YoY, the company posted a 78% jump in net profit at Rs.20.48 crore on 17% rise in net sales.
NEWS FLASH
A marketing and distribution deal has been signed by the company with Suntory Liquors to launch Yamazaki 12 YO and Hibiki 17 YO in India. By July 2011, premium liquors with a price range of Rs.6500 and Rs.10,000 are to marketed across all the metros.
MY VIEW
We have a noticed a fancy among the traders regarding this stock. A short term trade could be done from time to time on account of any reliable news but any holding in this stock is not going to reward share holders, as they expect.
