Stock market recommendations: According to Motilal Oswal Financial Services Ltd, the top stock picks for the week (starting June 2, 2025) are Radico Khaitan and JK Cement . Let’s take a look:
Radico Khaitan
Radico Khaitan, a legacy player since 1943, is one of the oldest and largest IMFL manufacturers in India with a diverse portfolio across whisky, vodka, gin, rum, and brandy (ranging from INR500 to INR8000), covering a large customer base. Driven by consistent volume growth (from 20m cases in FY15 to 31m in FY25) & sharp execution, Radico has outperformed peers through premiumisation & is now expanding its premium & luxury portfolio to strengthen trade & consumer pull.
With an ~8% IMFL market share and rising presence in the P&A segment, we estimate a robust 6%/22%/30% in revenue/EBITDA/APAT CAGR during FY25-28E. Overall volume is projected at 9%, driven by a robust 15% CAGR in the P&A portfolio.
JK Cement
JK Cement (JKCE) reported better-than-expected results for 4QFY25, exceeding our estimates primarily due to a strong 15% YoY growth in volumes. Revenue/EBITDA/adj. PAT rose by 15%/37%/69% YoY. Management aims to achieve ~20mt grey cement volume (~12% YoY growth) in FY26. Of the ₹150–200/t cost-saving target, ₹40/t was realized in FY25; FY26 should see ₹25–30/t savings plus a full-year ₹75/t benefit. JKCE remains one of our preferred picks in the cement sector.
We raise FY26/27E EBITDA by ~4% each on higher volume and better profitability of its UAE plant. We expect its revenue/EBITDA/profits to post a CAGR of 15%/20%/31% over FY25-27E.
Disclaimer: The opinions, analyses and recommendations expressed herein are those of brokerage and do not reflect the views of The Times of India. Always consult with a qualified investment advisor or financial planner before making any investment decisions.
Radico Khaitan
Radico Khaitan, a legacy player since 1943, is one of the oldest and largest IMFL manufacturers in India with a diverse portfolio across whisky, vodka, gin, rum, and brandy (ranging from INR500 to INR8000), covering a large customer base. Driven by consistent volume growth (from 20m cases in FY15 to 31m in FY25) & sharp execution, Radico has outperformed peers through premiumisation & is now expanding its premium & luxury portfolio to strengthen trade & consumer pull.
With an ~8% IMFL market share and rising presence in the P&A segment, we estimate a robust 6%/22%/30% in revenue/EBITDA/APAT CAGR during FY25-28E. Overall volume is projected at 9%, driven by a robust 15% CAGR in the P&A portfolio.
JK Cement
JK Cement (JKCE) reported better-than-expected results for 4QFY25, exceeding our estimates primarily due to a strong 15% YoY growth in volumes. Revenue/EBITDA/adj. PAT rose by 15%/37%/69% YoY. Management aims to achieve ~20mt grey cement volume (~12% YoY growth) in FY26. Of the ₹150–200/t cost-saving target, ₹40/t was realized in FY25; FY26 should see ₹25–30/t savings plus a full-year ₹75/t benefit. JKCE remains one of our preferred picks in the cement sector.
We raise FY26/27E EBITDA by ~4% each on higher volume and better profitability of its UAE plant. We expect its revenue/EBITDA/profits to post a CAGR of 15%/20%/31% over FY25-27E.
Disclaimer: The opinions, analyses and recommendations expressed herein are those of brokerage and do not reflect the views of The Times of India. Always consult with a qualified investment advisor or financial planner before making any investment decisions.
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