Radico Khaitan Limited
Radico Khaitan Limited Fundamental Analysis
Radico Khaitan Limited (RADICO.BO) shows moderate financial fundamentals with a PE ratio of 70.36, profit margin of 8.84%, and ROE of 18.72%. The company generates $58.5B in annual revenue with strong year-over-year growth of 17.79%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 84.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze RADICO.BO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentRADICO.BO demonstrates superior asset utilization.
Valuation Score
WeakRADICO.BO trades at a premium to fair value.
Growth Score
ExcellentRADICO.BO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentRADICO.BO maintains a strong and stable balance sheet.
Profitability Score
ModerateRADICO.BO maintains healthy but balanced margins.
Key Financial Metrics
Is RADICO.BO Expensive or Cheap?
P/E Ratio
RADICO.BO trades at 70.36 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RADICO.BO's PEG of 5.43 indicates potential overvaluation.
Price to Book
The market values Radico Khaitan Limited at 12.22 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 39.96 times EBITDA. This signals the market has high growth expectations.
How Well Does RADICO.BO Make Money?
Net Profit Margin
For every $100 in sales, Radico Khaitan Limited keeps $8.84 as profit after all expenses.
Operating Margin
Core operations generate 22.49 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.72 in profit for every $100 of shareholder equity.
ROA
Radico Khaitan Limited generates $10.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Radico Khaitan Limited generates limited operating cash flow of $3.85B, signaling weaker underlying cash strength.
Free Cash Flow
Radico Khaitan Limited produces free cash flow of $2.68B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $20.01 in free cash annually.
FCF Yield
RADICO.BO converts 0.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
70.36
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
12.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.22
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.41
vs 25 benchmark
How RADICO.BO Stacks Against Its Sector Peers
| Metric | RADICO.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 70.36 | 22.26 | Worse (Expensive) |
| ROE | 18.72% | 1212.00% | Weak |
| Net Margin | 8.84% | -5484.00% (disorted) | Weak |
| Debt/Equity | 0.21 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.65 | 2.53 | Neutral |
| ROA | 10.69% | -192744.00% (disorted) | Strong |
RADICO.BO outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Radico Khaitan Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
99.40%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
50.47%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
506.48%
Industry Style: Defensive, Dividend, Low Volatility
High Growth