Radico Khaitan surges 19% to a new high on roll out of two new IMFL brands

As Radico Khaitan launched new offerings to the consumers, its shares jumped almost 19 per cent to touch a new lifetime high to Rs 1,215 per share on the BSE intraday today.

The company on Monday announced through a filing that it has launched two new premium Indian Made Foreign Liquor (IMFL) namely Magic Moments Dazzle Vodka and Royal Ranthambore Heritage Collection Royal Crafted Whisky (blended malt scotch) in the brown and white spirit categories.

Both liquors will be available in selected stores in Delhi, Karnataka, Uttar Pradesh, Goa, Maharashtra, Rajasthan, and Haryana in the first phase of the launch.

Magic Moments Dazzle Vodka will be available in two variants, i.e. Magic Moments Dazzle Gold and Magic Moments Dazzle Vanilla. While Royal Ranthambore is crafted from different bespoke Blended Malt Scotch from various regions of Scotland, the company said on Monday post-market hours. 

Being optimistic about the two launches, the management believes that these brands will be a game-changer in this space and will undisputedly be the most phenomenal trendsetter. 

“Vodka currently accounts for less than 5 per cent of the domestic IMFL volumes compared to around 25-30 per cent globally. With the favourable demographic profile and changing consumer preferences, we believe that the Vodka industry is bound to expand, the management said.

Currently, Radico Khaitan has five millionaire brands which are 8PM Premium Black Whisky, 8PM Whisky, Contessa Rum, Old Admiral Brandy and Magic Moments Vodka. Radico Khaitan is also one of the largest providers of branded IMFL to the Canteen Stores Department (CSD), which has significant business barriers to entry.

The stock of Radico Khaitan, in the last six months, has outperformed the market by zooming over 120 per cent, as compared to a 25.6 per cent rise in the S&P BSE Sensex. The counter closed near 15 per cent to Rs 1173.2 per share on the BSE at the market end today.