Radico Khaitan Shares Jump on Commissioning of New Distillery

| Leave a Comment | Stocks

Radico Khaitan’s share price rose by 1% on September 18, 2023, after the company announced the commissioning of a new greenfield grain distillery in Sitapur, Uttar Pradesh. The distillery has a capacity of 350 kilo-liters per day and is expected to be fully operational within 2-3 weeks. The company also installed a captive power plant of 15 MW and a malt maturation facility with a capacity of 10,000 barrels at the site.

The new distillery will help to secure Radico Khaitan’s extra-neutral alcohol (ENA) supplies and support the growth of its branded business for the next 7-10 years. The company expects to realize the full financial benefit of the new facility from Q3 FY24.

Radico Khaitan is the largest manufacturer of Indian Made Foreign Liquor (IMFL) in India with a production capacity of 165 million liters per annum. Its stock is currently trading at a trailing PE of 79.30x, making it the second most expensive stock among alcohol-making peers.


The commissioning of the new distillery is a positive development for Radico Khaitan. It will help to secure the company’s ENA supplies and support the growth of its branded business. The new facility is also expected to boost the company’s profitability.

However, it is important to note that Radico Khaitan’s stock is currently trading at a premium valuation. Investors should carefully consider the company’s fundamentals and investment outlook before making any investment decisions.


Related News

  • 22 Sep

    NBCC shares trade higher on Rs 100 crore work order from SAIL

    NBCC shares were trading 3 percent higher on September 22 after the company announced having bagged a work order worth Rs 100 crore from SAIL. This is the fourth order-win announced by the company in this month, the total value of the same being Rs 450 crore. NBCC is a public sector undertaking engaged in the business of construction and real estate development. The company specializes in providing project management, consultancy and engineering services for civil construction, infrastructure development, and real estate projects.

  • 22 Sep

    Glenmark Pharma stock falls on stake sale in Glenmark Life Sciences

    Glenmark Pharma stock fell after the company announced it would sell a 75% stake in its subsidiary Glenmark Life Sciences to Nirma. Analysts expect the stake sale to benefit Glenmark Pharma, as it will transition from a net debt position to a cash surplus position. This is expected to have a positive impact on the company's return ratios over the next two to three years.

  • 22 Sep

    Berger Paints Shares Hit 52-Week High After Turning Ex-Bonus

    Berger Paints shares surged 6% to hit a 52-week high after turning ex-bonus on the record date for the issue of bonus shares in the ratio 1:5. The company posted a net profit of Rs 326.3 crore in the April-June quarter of FY24, up 39% year-on-year, on revenue of Rs 2,739.7 crore, up 10% year-on-year. The company expects to get net cash positive by the end of this fiscal year and expects to end the year with double-digit revenue growth on strong demand outlook.

  • 22 Sep

    Market Update for September 22, 2023

    IdeaForge Tech up 3.4% on order RVNL up 3% on highway MoU JSW Steel up 0.4% on sale ICICI Lombard down 1.6% on CEO exit ICICI Bank down 1% on healthcare investment NHPC up 1.3% on extended additional charge Kalyani Forge up 3.2% on new MD IRB Infra up 2.5% on road project closure

  • 22 Sep

    Lux Industries Shares Down 3% After Income Tax Raid

    Lux Industries shares fell 3% on September 22 after news emerged that the Income Tax department had conducted searches at the company's premises in Kolkata and alleged a tax evasion of Rs 200 crore. The company has confirmed the searches and is extending full support.

Leave a Reply

Your email address will not be published. Required fields are marked *