Motilal Oswal retains Radico Khaitan as preferred buy in Q1 FY27 review
Motilal Oswal cited premiumisation-led growth in retaining Radico Khaitan as a preferred Buy. Its review was more selective on Bajaj Housing Finance and Eris Lifesciences, despite healthy growth and margin resilience across covered companies.
What happened
Motilal Oswal’s Q1 FY27 review retained Radico Khaitan as a preferred Buy, citing premiumisation-led growth. The brokerage stayed selective on Bajaj Housing
Key facts
- Bajaj Housing Finance AUM rose 24% year-on-year to nearly Rs 1.5 trillion
- Bajaj Housing Finance disbursements increased 33%
- Motilal Oswal target price for Bajaj Housing Finance: Rs 95
Why this matters
The brokerage’s selective stance highlights premium portfolio exposure and disciplined valuations as key considerations for partnerships or acquisitions in consumer brands.
What to watch
- Quarterly volume growth and revenue share of Prestige and Above brands
- Gross-margin movement versus ENA, glass, packaging, and marketing-cost inflation
- State excise-policy changes, price approvals, and route-to-market disruption in key markets
- Urban discretionary-demand indicators and premium-alcohol category growth
- New premium launches, distribution additions, and traction in higher-margin segments
- Consensus earnings revisions and changes in Radico Khaitan's valuation premium versus spirits peers
- Radico Khaitan is likely to intensify distribution expansion for premium and luxury labels, particularly in higher-income urban markets and travel retail channels.
- Management may maintain elevated brand-building and launch spending to protect premium-market share, accepting some near-term cost pressure for longer-term mix gains.
- Other listed spirits companies may accelerate premium product launches, partnerships, and packaging upgrades as investor preference shifts toward premiumisation execution.
- Brokerage coverage may become more polarized, with companies showing growth but limited valuation comfort facing restrained target-price upgrades.