Radico Khaitan Ltd. Falls 6.21% Amid Mixed Technical Signals and Strong Fundamentals

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Radico Khaitan Ltd. experienced a challenging week on the bourses, closing at Rs.3,095.10 on 2 January 2026, down 6.21% from the previous Friday’s close of Rs.3,300.10. This decline contrasted sharply with the Sensex’s 1.35% gain over the same period, highlighting a notable underperformance amid mixed fundamental and technical developments. The week was marked by an upgrade to a Buy rating on 29 December 2025, followed by a technical momentum shift signalling a mildly bullish outlook despite recent price weakness.




Key Events This Week


29 Dec 2025: Stock opens at Rs.3,259.35, down 1.23%


30 Dec 2025: Upgrade to Buy announced; stock rallies 3.42% to Rs.3,370.80


31 Dec 2025: Profit-taking leads to 2.21% decline to Rs.3,296.30


1 Jan 2026: Further dip of 1.28% to Rs.3,254.25


2 Jan 2026: Technical momentum shift noted; stock falls 4.89% to Rs.3,095.10





Week Open
Rs.3,300.10

Week Close
Rs.3,095.10
-6.21%

Week High
Rs.3,370.80

vs Sensex
-7.56%



29 December 2025: Weak Start Amid Broader Market Decline


Radico Khaitan began the week on a subdued note, closing at Rs.3,259.35, down 1.23% from the previous close. This decline occurred alongside a 0.41% drop in the Sensex to 37,140.23, reflecting cautious sentiment in the market as investors digested year-end developments. The stock’s volume was relatively low at 5,918 shares, indicating limited trading interest on the first day of the week.



30 December 2025: Upgrade to Buy Spurs 3.42% Rally


The highlight of the week came on 30 December when MarketsMOJO upgraded Radico Khaitan Ltd. from a Hold to a Buy rating. This upgrade was driven by strong financials, including a 29.19% year-on-year growth in net sales to ₹4,304.05 crores for the nine months ended December 2025, and robust operational metrics such as a Debt to EBITDA ratio of 1.04 times and a 19.3% ROCE. The upgrade also reflected bullish technical indicators, with daily moving averages firmly positive and monthly momentum signals strengthening.


Following the announcement, the stock surged 3.42% to close at Rs.3,370.80 on heavy volume of 25,131 shares, outperforming the Sensex which was nearly flat, down 0.01% at 37,135.83. This rally demonstrated investor enthusiasm for the company’s improved outlook and reinforced confidence in its growth trajectory.




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31 December 2025: Profit-Taking Triggers 2.21% Decline


After the strong rally, Radico Khaitan saw profit-taking on 31 December, with the stock retreating 2.21% to Rs.3,296.30 on a volume of 14,470 shares. This pullback came despite a 0.83% gain in the Sensex to 37,443.41, signalling some divergence from broader market strength. The correction was likely a natural consolidation following the previous day’s sharp gains, as investors locked in short-term profits ahead of the new year.



1 January 2026: Continued Weakness Amid Low Volume


The first trading day of 2026 saw Radico Khaitan decline further by 1.28% to Rs.3,254.25, with volume dropping sharply to 3,379 shares. The Sensex edged up 0.14% to 37,497.10, indicating that the stock’s weakness was not reflective of broader market trends. This modest decline suggested cautious sentiment persisted, possibly due to uncertainty around the sustainability of the recent upgrade-driven rally.



2 January 2026: Technical Momentum Shift and Sharp 4.89% Drop


On 2 January, Radico Khaitan closed at Rs.3,095.10, plunging 4.89% on heavy volume of 36,258 shares. This sharp decline coincided with a technical momentum shift from bullish to mildly bullish, as detailed in a MarketsMOJO report. While monthly indicators such as MACD and Bollinger Bands remained positive, weekly momentum showed signs of weakening, with the weekly MACD mildly bearish and the Know Sure Thing oscillator also signalling caution.


The stock’s price action reflected this mixed technical outlook, with a notable underperformance relative to the Sensex’s 0.81% gain to 37,799.57. Despite the dip, Radico Khaitan remains well above its 52-week low of Rs.1,846.10, though below its 52-week high of Rs.3,695.00, indicating some resilience amid volatility.




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Daily Price Comparison: Radico Khaitan Ltd. vs Sensex


















































Date Stock Price Day Change Sensex Day Change
2025-12-29 Rs.3,259.35 -1.23% 37,140.23 -0.41%
2025-12-30 Rs.3,370.80 +3.42% 37,135.83 -0.01%
2025-12-31 Rs.3,296.30 -2.21% 37,443.41 +0.83%
2026-01-01 Rs.3,254.25 -1.28% 37,497.10 +0.14%
2026-01-02 Rs.3,095.10 -4.89% 37,799.57 +0.81%



Key Takeaways


Positive Signals: The upgrade to a Buy rating on 29 December was supported by strong financial fundamentals, including a 29.19% year-on-year sales growth and a low Debt to EBITDA ratio of 1.04 times. Institutional investor confidence remains high with a 43.47% stake, and the company’s long-term returns have significantly outpaced the Sensex, delivering 27.23% over the past year and over 600% in five years.


Cautionary Signals: Despite the upgrade, the stock faced profit-taking and technical momentum shifts that led to a 6.21% weekly decline. Weekly technical indicators such as MACD and KST suggest short-term momentum weakening, while valuation metrics remain elevated with an Enterprise Value to Capital Employed ratio of 12.4. The PEG ratio of 1.5 indicates growth expectations are priced in, leaving limited room for disappointment.



Conclusion


Radico Khaitan Ltd.’s week was characterised by a sharp contrast between fundamental optimism and technical caution. The MarketsMOJO upgrade to Buy reflected robust financial health and improving medium-term momentum, yet the stock’s price action revealed vulnerability to short-term profit-taking and mixed technical signals. While the company’s long-term performance and institutional backing remain strong pillars, investors should monitor near-term momentum indicators closely amid the broader market’s steady gains. The stock’s premium valuation and recent volatility underscore the need for careful assessment of risk versus reward in the current environment.






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