HDFC Securities has retained its 'Buy' rating on Tilaknagar Industries with a target price of ₹700, implying around 30 per cent upside from the previous close of ₹540. According to the brokerage firm's report, ground checks indicate that the company is effectively addressing state-specific requirements to strengthen the Imperial Blue franchise. On the bourses, Tilaknagar Industries shares surged over 7 per cent to hit an intraday high of ₹579.80 following the positive analyst coverage.
The brokerage expects Tilaknagar's focus on strengthening the Imperial Blue franchise in FY27 will bolster its pan-India presence and act as a critical enabler for upcoming launches and mid-teen volume growth over FY28-30. As reported by HDFC Securities, Karnataka remains a key growth market, where the brand has seen strong traction following agile price cuts implemented immediately after tax changes. This has been followed by market-share gains in Andhra Pradesh, Uttarakhand and Rajasthan. The company has also improved SKU availability and widened market supplies, measures that should help offset pressure in Maharashtra and West Bengal following the discontinuation of the low-priced SKU.
According to HDFC Securities, the company is expected to benefit from its premiumisation strategy, having expanded its organic portfolio with Monarch Legacy Brandy and Seven Island. The brokerage noted that investments in Spaceman and Black Tiger Distilleries are helping expand the company's luxury and super-premium presence. As Imperial Blue rebuilds market share, HDFC Securities expects Tilaknagar to expand its category and portfolio participation, with scope for the company to incubate an organic vodka brand given the rapid growth in vodka segment.
HDFC Securities expects net debt to decline to ₹17 billion by March 2027, from ₹21 billion in June 2026, supported by internal cash generation and promoter conversion of warrants. The brokerage noted that any easing of restrictions on national brands in Tamil Nadu could materially improve Tilaknagar's prospects and strengthen its financial position. This financial improvement is expected to support the company's expansion plans and growth strategy across multiple product categories.
