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Valuation vertigo? Radico Khaitan isn’t cheap. But it may not be too expensive either. Here’s why.

Valuation vertigo? Radico Khaitan isn’t cheap. But it may not be too expensive either. Here’s why.

Abhishek Khaitan, MD and CEO, Radico Khaitan; image credit: courtesy of Radico Khaitan

Synopsis

Radico has outperformed the Nifty Smallcap 250 index over a five-year period, but institutional investors seem to be turning cautious. Though the stock may look overvalued on valuation metrics alone, it could be a temporary phase before the beginning of a decadal theme.

By &
7 mins read,
Abhishek Khaitan, managing director and CEO of Radico Khaitan, has a problem brewing. Call it a problem of excess, but some institutional investors have turned cautious on Khaitan’s alcobev company as they fear valuations have shot through the roof. And worse, some analysts even quip that in ‘value terms’ Radico’s stock is more expensive than a bottle of Rampur Signature Reserve, a single-malt whiskey sold by the company. Radico Khaitan shares

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