Radico Khaitan Shows Strong Debt Management Amid Mixed Long-Term Growth Signals

Radico Khaitan, a prominent player in the Breweries & Distilleries sector, has recently undergone an adjustment in evaluation, reflecting a nuanced view of its market position and performance indicators. The company has demonstrated a strong ability to service its debt, evidenced by a low Debt to EBITDA ratio of 1.04 times. In the latest quarter, Q3 FY24-25, Radico Khaitan reported notable financial metrics, including a record net sales figure of Rs 1,294.24 crore and a PBDIT of Rs 183.93 crore.
Despite these positive results, the stock's long-term growth trajectory has shown some challenges, with net sales growing at an annual rate of 14.49% and operating profit at 9.19% over the past five years. The company’s return on capital employed (ROCE) stands at 13.14%, indicating a valuation that may be perceived as expensive relative to its historical averages.

Additionally, the stock has maintained high institutional holdings at 43.28%, suggesting a robust interest from investors with significant analytical resources. Overall, Radico Khaitan's technical indicators reflect a mildly bullish trend, with MACD and KST factors also showing bullish signals.

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