Radico Khaitan Limited Intrinsic Value
RADICO · Fast Moving Consumer Goods · Current price ₹4,473.4
Is Radico Khaitan Limited undervalued?
We estimate the fair value of Radico Khaitan Limited at ₹3,456 per share, against a market price of ₹4,368. That puts the share price about -20.9% above our estimate, at medium confidence. This is our view of what the business is worth, not a target price or a forecast of where the share price will go.
How this fair value is calculated
This estimate comes from 2 methods: Fair multiple (P/E) (₹3,940), PEG (growth-implied P/E) (₹1,576). Each is weighted by how well its inputs held up for this company. The full working, including the assumptions and what data was missing, is set out below.
The range around this estimate
Our estimate for Radico Khaitan Limited spans ₹2,074 to ₹3,940. A margin of safety means buying meaningfully below the estimate: the wider the range, the more room the assumptions leave for error.
Margin of safety
Value investors look for a margin of safety: a discount to estimated value that absorbs being wrong. At ₹4,368 against an estimated value of ₹3,456, Radico Khaitan Limited trades at -20.9%, i.e. a premium to our estimate. How much margin to demand depends on how much you trust the inputs, which is what the confidence band below is for.
How we got this fair value
Every number below is part of the same estimate for Radico Khaitan Limited. Nothing here is a target price or a forecast of where the share price will go.
Workable, with real gaps. Weigh it alongside your own view rather than on its own.
Estimate range ₹2,074 – ₹3,940
Why this method for this business
Radico Khaitan is an asset-light compounder in the FMCG sector, where earnings power and a durable moat are key. Relative P/E and PEG models are appropriate for valuing its normalized earnings and growth potential.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
- dcf: Not suitable for an asset-light brand with stable earnings and a clear moat
- peg: Used as a secondary check for growth-implied valuation
What was missing
- Lack of forward EPS estimates for precise DCF modeling
- Limited historical data on sector multiples for more granular analysis
What drives it
18 inputs, grouped by how strong each claim is
- Sector-median P/E
- 19.87×
- Peers used
- 11
- EPS (TTM)
- 52.53 ₹/share
- Own-history median P/E
- 58.25×
- Earnings growth
- 40% CAGR
peer-median
peer-median
computed
reconstructed (one feature, dampened — not a cap)
computed
- Anchor correction
- peer anchor 19.9x diverges 2.9x from 7yr own-history 58.2x (no size-comparable peer) — anchor blended 0.6 toward own-history → 42.9x
- Term: quality
- +4.9%
- Term: growth
- +40.0%
- Term: capital_allocation
- +0.5%
- Term: financial_strength
- +6.2%
- Term: history
- +10.7%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
peer-anchor mismatch — deep own-history used instead
quality 65/100 (high, stable returns) → premium
durable ~19% CAGR (ROCE 16% > hurdle) → premium
capital allocation: steady → neutral
financial strength: low leverage (D/E 0.2) → mild premium
history: market paid +36% vs sector, dampened ×0.3 (one feature, not the anchor)
sector re-rating: no sector-norm history → not used
rates: risk-free 6.9% below ~7.1% normal → higher multiple
risk: no analyst-dispersion signal available → neutral (lowers confidence, not PE)
- Premium vs sector
- +74.8%
- Fair-multiple confidence
- 87%
- Fair P/E
- 75×
- Growth-implied P/E
- 30×
fundamentals + macro (not capped at own history)
data completeness + term agreement
sector median × ∏(1+term) — Dynamic Fair Multiple
min(growth, 30)
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for Radico Khaitan Limited: which models suit the business, the moat, the growth and margin assumptions. It does not produce the number. The fair value itself is computed in Python by a deterministic engine (version 2026.08.1) from those inputs, so the same inputs always give the same result and every figure above can be traced to a source.
Estimated 14 Sept 2026. Re-run as new financials and news arrive.
How we value stocks
We estimate what a business is worth from its own economics: cash flows, returns on capital, and a multiple justified by its quality, rather than from where the share price has been. A fair value estimate is a view, not a verdict, and it is only as good as the inputs listed above.
Read the full fair-value methodologyMore on Radico Khaitan Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.