The real question is – Can Indri be a million cases per year brand in 8-9 years ?!!
If the answer to that question is yes, then Indri will generate: Revenue of about 3100cr
(current EDP ~21000 per case + price escalation of 4.5%/yr for 8 yrs = Rs31,000 per case)
(Assuming GM of 70% (per mgmnt) and advertising + dep + Other Expense =300cr )
And, PAT of around 1400cr same as United Spirits PAT in FY23
That is PAT of just Indri alone = Entire United Spirits with a MCAP > 1lac cr
Some million cases (worldwide sales) brands:
Johnny Walker – 22 M
Glendifddich – 1.4 M
Teachers – 1.3 M
And obviously, many Indian non-premium brands from United Spirits (Diageo) & Radico sell more than a million cases per year.
Some questions to think about:
Can Piccadily come up with another blockbuster brand just like Indri in the next 8yrs ?!!
Can they come up with maybe 2 more in the next 8 yrs ?!!
If yes, then what happens to PAT in 8 yrs – can Piccadily’s PAT be twice or three times that of United Spirits FY23 PAT ??!!
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