Buy Radico Khaitan Ltd For Target Rs. 3,375 by Motilal Oswal Financial Services Ltd

* We expect 25% revenue growth. In P&A, we model 22% volume growth and 27% revenue growth. In popular, we expect 50% revenue growth and 45% growth in volume.
* GM to contract 40bp YoY to 43.2% on high RM prices. EBITDA margin expected to improve 60bp YoY to 15.3%.
* Radico has mid-to-high single-digit revenue contribution from Maharashtra, so the impact of increase in excise duty will be less compared to other branded players.
* The success of new launches will be key monitorable for the company performance.
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