Radico Khaitan Ltd
ISIN: INE944F01028 • Market Cap: —
The 5-Pillar Quality Audit for Radico Khaitan Ltd
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (5.3%), Return on Capital Employed (24.3%), and equity compounding (18.2%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.19 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (73.6%) and 3Y PAT CAGR (38.2%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 89.07 vs PEG of — and Dividend Yield of 0.2%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 40.2%, backed by 46.3% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 24.3%)
Radico Khaitan Ltd generates exceptional return on capital employed of 24.3%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 18.2%)
Shareholder equity compounds at a healthy 18.2%, exceeding average Indian equity benchmarks.
Strong Topline Expansion (3Y Sales CAGR: 73.6%)
Revenue has expanded at 73.6% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 38.2%)
Net earnings have compounded at 38.2% annualized, demonstrating operating leverage.
Deep Institutional Sponsorship (46.3%)
Mutual funds, domestic DIIs, and foreign FIIs hold 46.3%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Priced for Perfection (P/E: 89.07)
A steep valuation multiple of 89.07 leaves little margin for safety against quarterly earnings misses.
Sectoral & Macro Headwinds (Fast Moving Consumer Goods)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Fast Moving Consumer Goods space.
Quantitative Strategy Eligibility
Checking RADICO against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 74/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Fast Moving Consumer Goods Sector Peer Comparison
Compare RADICO directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Radico Khaitan Ltd (RADICO)Current | 74/100 | — | 89.07 | 24.3% | 0.19 | — |
| Hindustan Unilever Ltd. (HINDUNILVR) | 75/100 | ₹4.74 Lakh Cr | 31.67 | 22.6% | 0.00 | View |
| ITC Ltd. (ITC) | 81/100 | ₹3.34 Lakh Cr | 16.86 | 36.4% | 0.03 | View |
| Nestle India Ltd. (NESTLEIND) | 68/100 | ₹2.83 Lakh Cr | 74.37 | 57.2% | 0.00 | View |
| Varun Beverages Ltd. (VBL) | 75/100 | ₹1.46 Lakh Cr | 43.23 | 19.6% | 0.10 | View |
| Britannia Industries Ltd. (BRITANNIA) | 74/100 | ₹1.30 Lakh Cr | 50.04 | 62.3% | 0.27 | View |
Frequently Asked Questions: Radico Khaitan Ltd
Q:What is the 5-Pillar Fundamental Score for Radico Khaitan Ltd (RADICO)?
Radico Khaitan Ltd has a RupeeTools Fundamental Score of 74/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (69/100), Financial Health (81/100), Growth (99/100), Valuation (30/100), and Ownership Quality (82/100).
Q:Is RADICO fundamentally strong for long-term investment?
Yes, RADICO exhibits solid fundamental strength with a 74/100 score, driven by a return on equity of 18.2% and a debt-to-equity ratio of 0.19.
Q:Does RADICO pass the Coffee Can Investing filter?
Yes! RADICO satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does RADICO compare against other Fast Moving Consumer Goods peers?
Within India's Fast Moving Consumer Goods sector, RADICO trades at a P/E of 89.07 and generates an ROCE of 24.3%. Compare its 5-Pillar score of 74/100 against top sector peers like Hindustan Unilever Ltd. (75/100), ITC Ltd. (81/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.