This Liquor Stock Has Risen 700% in 5 Years—ICICI Securities Predicts 19% More Gains

A leading liquor stock has delivered stellar returns—200% in 3 years and 700% in 5 years. Now, ICICI Securities forecasts another 19% upside. Should you invest?

May 5, 2025 - 20:03
 0  6
This Liquor Stock Has Risen 700% in 5 Years—ICICI Securities Predicts 19% More Gains
This Liquor Stock Has Risen 700% in 5 Years—ICICI Securities Predicts 19% More Gains

Up 200% in 3 Years, 700% in 5 Years! ICICI Sec Sees Another 19% Upside in This Liquor 

Stock. Do You Own It?

Mumbai, May 5, 2025 — Investors chasing multi-bagger stocks often end up following tech, energy, or FMCG names. But sometimes, the most remarkable wealth creators are hidden in plain sight—and this liquor stock has been quietly outperforming the broader market by a mile. Over the past 5 years, it has delivered an astounding 700% return, with a 200% rally just in the last 3 years.

Now, leading brokerage ICICI Securities has reiterated its bullish stance, suggesting another 19% upside from current levels. So, what’s behind the meteoric rise of this stock, and is there still room for more gains? Let’s dive deep into what makes Radico Khaitan Ltd. a toast-worthy pick in the Indian stock market.


Stock Performance at a Glance

Time Frame Return (%) Sensex Return (%)
1 Year +47% +19%
3 Years +203% +58%
5 Years +703% +101%

Radico Khaitan has not just outperformed its peers but has also decimated benchmark indices in terms of absolute return. From trading around ₹120 in 2020, the stock is now hovering around ₹960 as of May 2025.


What is Driving Radico Khaitan's Growth?

The success story of Radico Khaitan isn’t built on hype—it’s based on a solid mix of strategic brand-building, premiumization, export market penetration, and strong management vision. Here's what’s propelling the stock:

1. Premiumisation Strategy

Radico's sharp pivot from mass-market liquor to premium and semi-premium brands has paid off. Brands like Magic Moments Verve Vodka, Rampur Indian Single Malt, and Jaisalmer Gin are gaining traction not just in India but globally.

“Their product innovation and timely entry into the premium spirits segment has created pricing power,” says a report by ICICI Securities.

2. Strong Export Performance

The company has expanded its export footprint significantly over the past 3 years. Rampur Indian Single Malt is now available in over 40 countries, commanding a higher margin and reinforcing Radico’s global image.

3. Capacity Expansion

Radico has invested over ₹400 crore in setting up new distillation units, boosting its manufacturing strength. The greenfield plant in Sitapur, Uttar Pradesh, is already operational and expected to double production capacity in the coming years.

4. Efficient Cost Management

While alcohol players are prone to input cost inflation (molasses, packaging, freight), Radico has successfully maintained robust EBITDA margins above 17%, outperforming many peers in the industry.


ICICI Securities' Take: Target Price and Valuation

According to a detailed research note issued by ICICI Securities last week, the brokerage has given a BUY rating on Radico Khaitan with a target price of ₹1,150, implying a 19% upside from the current market price.

Valuation Metrics:

Metric Value
CMP (May 2025) ₹960
Target Price ₹1,150
Forward P/E (FY26E) 39x
PEG Ratio 1.2
EBITDA Margin (FY24) 17.6%

“We like Radico for its consistent performance, margin resilience, and ability to scale premium brands. The stock deserves a rerating given its RoCE profile and brand moat,” the ICICI note mentioned.


Comparison with Peers

Company 3-Year Return EBITDA Margin P/E Ratio (Fwd)
Radico Khaitan +203% 17.6% 39x
United Spirits +88% 15.2% 43x
Globus Spirits +76% 12.5% 35x

Clearly, Radico leads not only in stock performance but also in operational metrics, positioning itself as the best-in-breed alcohol stock in India.


What Analysts Are Saying

Multiple brokerages have echoed ICICI Securities' bullish outlook:

  • Motilal Oswal: “Radico’s margin expansion and premium focus give it an edge. Buy with a 12-month target of ₹1,120.”

  • Axis Capital: “With ramped-up exports and branding efforts, the company is entering a golden growth phase.”

  • HDFC Securities: “Expect continued outperformance; stock can double in 2–3 years if momentum holds.”


Should You Invest Now?

 Pros:

  • Strong brand portfolio with global recognition

  • Solid earnings track record

  • High return on equity (RoE ~21%)

  • Margin protection despite input cost pressure

  • Expanding production and distribution

 Risks:

  • Government regulation in liquor sector

  • Raw material price volatility

  • Possible taxation changes

  • High valuation compared to peers


Expert Portfolio Allocation Strategy

Aamar Deo Singh of Angel One recently noted that consumer discretionary, especially liquor stocks, offer defensive strength with alpha potential.

Sample Portfolio (Moderate-Risk Investor):

  • 30% Large-cap equities

  • 20% Mid-cap growth stories

  • 10% Defensive picks like Radico

  • 25% Fixed income

  • 15% Gold or REITs

"Radico is not just a stock; it’s a compounder. Any 5–10% allocation in a well-diversified portfolio can deliver strong alpha,” Singh said.


Investor Sentiment & Social Buzz

The retail community is excited about Radico, especially post-earnings:

  • “Holding since ₹180. Will never sell!” — X user @investor_luv

  • “Breakout incoming above ₹1,000!” — Telegram group ‘Midcap Gems’

  • “Fundamentally strong, technically solid. What more do you want?” — Reddit thread r/IndiaStocks


Final Thoughts: Is the Liquor Party Just Getting Started?

Radico Khaitan is a rare example of a traditional sector company transforming itself through brand-building, product innovation, and operational discipline. While the 700% rally over 5 years might suggest the stock is “done,” ICICI Securities believes there’s more fizz left in the bottle.

For long-term investors, this is a stock to watch closely—and possibly raise a toast to in the years ahead.


What's Your Reaction?

Like Like 0
Dislike Dislike 0
Love Love 0
Funny Funny 0
Angry Angry 0
Sad Sad 0
Wow Wow 0
ASJ Stock Market Classes ASJ Stock Market Classes is committed to equipping individuals with the knowledge and skills needed to navigate the stock market confidently. Our expert-led training programs, real-time market insights, and hands-on learning ensure that students gain practical trading experience. Master Stock Market Trading With ASJ Stock Market Classes and gain expert insights, hands-on training, and real-world strategies to excel in trading. Our expert-led courses provide in-depth stock market knowledge, real-time market analysis, and practical trading experience to help you become a confident trader. Our expert traders and market analysts provide comprehensive training in stock trading, investment strategies, and risk management to help you navigate the financial markets with confidence.