United Spirits, Radico Khaitan to be key beneficiaries of premiumization-led growth, says Antique Broking; raises target

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United Spirits, Radico Khaitan would be the key beneficiaries, according to Antique Stock Broking.The strong growth visibility should help companies to re-rate from current levels, the brokerage firm said in a report as it maintains a positive stance on United Spirits and Radico Khaitan.Also Read: Radico Khaitan, United Spirits and more: 5 liquor stocks surged 10%-88% in last one yearIt maintained a ‘Buy’ rating on United Spirits and raised the target price to ₹1,513 per share from ₹1,412 earlier, valuing at 60x PER. It also has a ‘Buy’ call on Radico Khaitan and has raised the target price to ₹1,996 per share from ₹1,849 previously, valuing it at 45x PER.United Spirits’ millionaire brands have grown 1% YoY in CY2023 driven by strong growth in mid and upper P&A segments.

Relaunched brands like Royal Challenge and Signature have driven overall performance, growing by 19% and 16% YoY, respectively.As per Antique Stock Broking, the rebranding of Royal Challenge and launch of Royal Challenge American Pride have been the key drivers.It expects the company to clock a net profit of ₹1,435.2 crore upon a revenue of ₹11,817.5 crore in FY25.Also Read: HPCL, BPCL, IOCL share prices rise 28-38% year-to-date: Should you Buy, Sell or Hold the stocks?Radico Khaitan outperformed peers with its millionaire brands growing by 7% YoY in 2023. During the year, 1965 Spirit of Victory Rum crossed a million cases (grew 32% to 1.2 million cases), taking its total millionaire brands to seven.