Should Radico Khaitan Limited (NSE:RADICO) Be Your Next Stock Pick?

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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Radico Khaitan Limited (NSE:RADICO), it is a financially-healthy company with a a great track record of dividend payments and a excellent future outlook. Below, I've touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on Radico Khaitan here.

Excellent balance sheet with reasonable growth potential and pays a dividend

RADICO is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that RADICO manages its cash and cost levels well, which is an important determinant of the company’s health. RADICO's has produced operating cash levels of 0.53x total debt over the past year, which implies that RADICO's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

NSEI:RADICO Past and Future Earnings, June 5th 2019
NSEI:RADICO Past and Future Earnings, June 5th 2019

RADICO is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.

NSEI:RADICO Historical Dividend Yield, June 5th 2019
NSEI:RADICO Historical Dividend Yield, June 5th 2019

Next Steps:

For Radico Khaitan, I've compiled three important aspects you should further examine:

  1. Historical Performance: What has RADICO's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  2. Valuation: What is RADICO worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether RADICO is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of RADICO? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.