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Why Radico Khaitan share price shot up 8% in a week — explained

Radico Khaitan share price: On fundamental ground, experts said that expected strong quarterly numbers for the liquor companies after home delivery approval, incentives from the UP government to the company, limited competition and company's announcement to become debt-free in next two years are the major triggers that have fueled bulk buying in the counter. (Mint)Premium
Radico Khaitan share price: On fundamental ground, experts said that expected strong quarterly numbers for the liquor companies after home delivery approval, incentives from the UP government to the company, limited competition and company's announcement to become debt-free in next two years are the major triggers that have fueled bulk buying in the counter. (Mint)

  • Radico Khaitan share price has given breakout on Friday at 790 and the stock has manged to sustained above that level, which reflects further rally in the counter, say experts

Radico Khaitan share price has shot up to the tune of near 8 per cent in the last 5 trade sessions. According to stock market experts, this rise in the liquor stock price has various reasons that includes both fundamental and technical. They said that Radico Khaitan share price chart pattern suggests breakout on Friday at 790 and the stock has managed to sustained above that levels, which reflects further rally in the counter. On fundamental ground, experts said that expected strong quarterly numbers for the liquor companies after home delivery approval, incentives from the UP government to the company, limited competition and company's announcement to become debt-free in next two years are the major triggers that have fuelled bulk buying in the counter.

Speaking on the fundamentals that has fuelled Radico Khaitan share price Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Market is expecting strong quarterly numbers for all liquor companies in June quarter after the home delivery approval. Apart from this, it has strong exposure in Uttar Pradesh, which is biggest liquor market in India and the UP government has recently announced some incentives for the company to boost the state economy as well. So, this is also playing in the mind of investors. Recently, the company promoters have announced to come out of its entire debt by FY24 that means the company is going to raise money in future that has sparked some overseas investment in the company, which is also working as strong positive sentiment for the stock."

Gorakshkar said that Radico Khaitan deals in liquor business which has limited 5-6 players with devoted area of operation. So, the uptrend in the stock can be expected further as company is expected to further boost its revenue growth and margins in upcoming results.

Radico Khaitan share price target

On what should be the ideal strategy for an investor in regard to Radico Khaitan shares; Mudit Goel, Senior Research Analyst at SMC Global Securities said, "On technical chart pattern, Radico Khaitan shares have given a breakout at 790 on Friday and it has managed to sustain above that levels for the next two days. Hence, an upside trend is expected and today's profit-booking should be seen as an opportunity to buy the counter at current levels for the immediate target of 860. Once it breaks this level, it may go up to 900 to 910 per stock levels in next one to two months." However, Mudit Goel of SMC Global Securities said that one must maintain stop loss below 800 while taking position in the counter.

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