Jefferies starts 'Buy' on Radico Khaitan, Allied Blenders; up to 25% upside on premiumisation play
Jefferies initiated coverage with 'Buy' on Radico Khaitan (TP ₹4,500) and Allied Blenders (TP ₹780), and 'Hold' on United Spirits (TP ₹1,560). The call hinges on premiumisation in India's alcoholic beverage market, with prestige-and-above driving 40% of profits on 10% of volumes and 30%+ EPS CAGR seen through FY26.
What happened
Jefferies initiated 'Buy' on Radico Khaitan and Allied Blenders with up to 25% upside, 'Hold' on United Spirits, citing premiumisation-led growth in India's
Key facts
- 25% upside
- 30%+ EPS CAGR FY23-FY26
- P&A 10% volumes / 40% profits
- P&A volume growth 12%
- Radico TP ₹4,500
- Allied Blenders TP ₹780
- United Spirits TP ₹1,560
- Allied Blenders +5.88%
- Radico ₹3,851 52-week high
Why this matters
The premiumisation thesis is repricing India's alcobev landscape, making prestige-tier brand acquisitions and portfolio upgrades increasingly valuable strategic targets.
What to watch
- Quarterly prestige-and-above volume mix and gross margin trajectory
- State excise policy changes and duty/pricing approvals across key states
- ENA, glass and packaging input cost trends
- FII/DII flow data and block deals in the names
- Rural and mass-segment volume demand signals
- Peer alcobev names (United Breweries, Globus Spirits, Tilaknagar) see sympathy bids and rating reviews
- Other brokerages publish catch-up notes or defend underweight on valuation
- Radico/Allied management lean into premium portfolio guidance on upcoming earnings calls
- Profit-taking near 52-week highs creates short-term volatility into the move