Radico Khaitan's premiumisation theme intact, says Amit Khurana | BT TV Exclusive

Shares of Radico Khaitan Ltd have slipped nearly 18% on a year-to-date (YTD) basis, trading 1.90% lower at Rs 2655.80 apiece on the BSE at 9:58 am on Thursday. Amit Khurana, head of equities at Dolat Capital, remains positive on the alcoholic beverages space as a key play within discretionary consumption. 

In an exclusive interview with Business Today, Khurana pointed out that while everyday staples are currently underperforming, Alcobev companies have thrived. 

"We like Radico in particular," Khurana said, emphasising that the company is "very clearly playing on the premiumization theme, even though the valuations had gone pretty much high, but I think they are back to the comfortable zone from our perspective."
 

“Notably, if you see the state budgets of this year, they have been pretty constructive on the sector,” Khurana said

He said that far better, more constructive policies from the government are assisting, and that the push to encourage higher quality, more responsible drinking is boosting the entire portfolio. 

In a stock exchange filing dated March 18, Radico Khaitan informed that its flagship Magic Moments Vodka recorded 8 million cases in sales this financial year. This marks a rise from the 7.1 million cases recorded last year. 

Beyond Radico Khaitan, Khurana also highlighted peer United Spirits Ltd, noting that the stock "seems pretty attractive" at current price points. 

Meanwhile, shares of United Spirits have declined over 7% this year, trading down 1.47% at Rs 1,300.70.

Khurana expects consumer purse strings to loosen once global macroeconomic and geopolitical tensions ease. "If war issues resolve, then consumers will open up the wallet," he said, suggesting that beaten-down sectors like quick-service restaurants (QSR) and discretionary durables could soon become interesting spaces to watch..