Jefferies has initiated coverage on Radico Khaitan and Allied Blenders and Distillers with a ‘Buy’ rating, citing improving growth prospects and supportive industry tailwinds. According to the brokerage, the outlook for India’s alcoholic beverages sector remains positive, with expectations of steady demand growth driven by rising urban consumption, premiumisation trends, and expanding distribution networks. Jefferies also highlighted that the India-UK free trade agreement, currently under discussion and expected to ease certain trade barriers, could act as a long-term catalyst for Indian spirits companies by improving export opportunities and enhancing global market access. The report suggests that both Radico Khaitan and Allied Blenders are well positioned to benefit from evolving consumer preferences, particularly in the premium and semi-premium segments, where demand has been gaining momentum. Investors are also likely to focus on margin expansion opportunities as companies continue to optimize product mix and strengthen brand portfolios. The brokerage’s positive stance reflects confidence in the structural growth story of the Indian alco-beverage industry, supported by demographic trends and increasing disposable incomes. The market reaction is expected to remain sensitive to regulatory developments and input cost fluctuations, but the long-term outlook remains constructive according to the note.
Jefferies Starts Coverage on Radico Khaitan and Allied Blenders, Assigns ‘Buy’ Rating
