Up 1800% in 5 Years! This Liquor Stock Gains 14% After Q4 Net Profit Jumps 146% — Do You Own It?

New Delhi | May 15, 2025 — In a jaw-dropping display of consistent outperformance, shares of Radico Khaitan Ltd. (NSE: RADICO) surged 14% in today’s trade after the liquor major reported a massive 146% jump in net profit for the fourth quarter of FY25. But this isn't a one-off: the stock has already rallied over 1800% in the last five years, transforming early believers into millionaires.

With strong financials, robust product portfolio, and expanding market presence, the company has now firmly cemented its status as a multibagger. The big question: Do you own this stock?

Q4 FY25: Profit Doubles, Margins Improve

Radico Khaitan posted a net profit of ₹186 crore for Q4 FY25, compared to ₹75.5 crore in the same quarter last year — a whopping 146% year-on-year (YoY) surge. The company also clocked revenue of ₹1,215 crore, up 35% YoY, fueled by premium product sales and increased operating efficiency.

Key financial highlights:

The stellar performance was primarily driven by:

• Premiumisation strategy across brands like Magic Moments Verve, Morpheus XO, and Rampur Indian Single Malt.

• Export growth, especially in African and European markets.

• Improved raw material sourcing and cost control.

Stock Soars 1800% in 5 Years: A True Multibagger

Radico Khaitan’s share price tells a story of sustained investor confidence. From trading around ₹90 levels in early 2020 to crossing ₹1,700 today, the stock has returned over 1800% to its long-term investors.

To put this into perspective:

• A ₹1 lakh investment in 2020 would be worth ₹19 lakh+ today.

• Even in the last 12 months, the stock has delivered over 90% returns.

This rise isn't mere market frenzy — it's backed by consistent earnings growth, strong fundamentals, and increasing brand equity in a growing sector.

Liquor Industry: High Spirits, High Margins

India’s liquor industry has long been a lucrative yet tightly regulated space. But with increasing urbanization, rising disposable income, and growing premium segment demand, the industry is undergoing a shift.

Radico is riding this wave with a sharp focus on the high-margin premium and super-premium categories. The segment now contributes over 40% of its revenue — up from just 15% five years ago.

Moreover, Radico has:

• Set up a state-of-the-art grain-based distillery in UP with a capacity of 330 KLPD.

• Launched over 15 premium SKUs in the last two years.

• Expanded its export footprint to over 85 countries.

Brokerages Bullish: Target Raised

Post-results, several brokerages have reiterated their bullish stance on Radico Khaitan.

• ICICI Securities: “Re-rating story intact. Premiumization-led margin expansion is visible. Revised target: ₹1,920.”

• Motilal Oswal: “Q4 results beat expectations. Structural growth story with robust fundamentals. Target: ₹2,050.”

• HDFC Securities: “Leadership in premium IMFL segment. Target price revised to ₹2,100.”

The common thread? Confidence in volume growth, margin expansion, and brand value enhancement.

What's Fueling the Growth?

Here’s what’s behind Radico’s incredible journey:

1. Premium Brand Portfolio

Radico’s pivot from mass market to premium offerings has paid off handsomely. Brands like Rampur Indian Single Malt are gaining international acclaim, often being compared to global labels like Glenlivet and Macallan.

2. Strategic Capex

The ₹750-crore greenfield project in Sitapur, Uttar Pradesh, is now operational, significantly increasing in-house capacity and reducing raw material dependence.

3. Operational Efficiency

The company’s focus on backward integration, reduced packaging costs, and ethanol blending have improved margins substantially.

4. Export Expansion

International sales now account for 18% of revenue, with flagship brands gaining traction in the U.S., U.K., and Japan.

Should You Invest Now?

While past performance isn’t a guarantee of future returns, Radico Khaitan’s fundamentals remain strong:

• Debt-to-equity: 0.26 (well under control)

• ROCE: 25%+

• Consistent EPS growth

• Positive free cash flow

Valuation-wise, at current levels, the stock trades at a P/E of 33x, which may seem rich, but justified given its growth trajectory and leadership in a high-margin niche.

Ideal for: Long-term investors looking for FMCG-like returns from the alcohol sector.

Risk factors:

• Regulatory tightening in key states.

• Raw material inflation (grain and glass).

• Competitive pressures from global brands entering India.

Final Word

Radico Khaitan has emerged as one of India’s most compelling growth stories in the liquor space. A mix of bold bets, premiumization, and consistent execution has created a true multibagger.

Whether you're already holding or still on the fence, one thing’s certain — this isn’t your average small-cap liquor stock anymore. It's now a major player with global aspirations and financial muscle to match.

As always, consult your financial advisor before investing, but don’t ignore the writing on the wall: Radico’s glass is more than half full — and rising.