Last Updated: April 12, 2023, 13:43 IST
Shares of Sula Vineyards zoomed almost 11 per cent to Rs 390 within the opening commerce on April 12. The inventory witnessed a steep enhance because the wine producer on Tuesday mentioned gross sales quantity from its personal manufacturers crossed 1 million instances in FY23. Besides, gross sales volumes in elite & premium wines went previous the 5 lakh instances mark for the primary time, the corporate knowledgeable in its enterprise replace.
The Company, the regulatory submitting added, has recorded its highest ever annual revenues each for its personal manufacturers in addition to the wine tourism enterprise. “The firm witnessed a robust almost 15 per cent progress YoY Q4FY23 for its personal manufacturers. Wine tourism grew by almost 18 per cent YoY Q4FY23 with an almost 30 per cent bounce in FY23 over FY22,” the statement said.
On the National Stock Exchange (NSE), the stock rallied 7 per cent to Rs 377.10 in intra-day trade. It had hit a 52-week high of Rs 432 on January 23, 2023.
Sula Vineyards is India’s largest and only listed wine producer with over 60 per cent share in the Elite & Premium1 wine business.
Sula Vineyards shares were listed on the bourses on December 22 last year, wherein the company had made a muted debut. The stock was listed at Rs 361 against the issue price of Rs 357. The initial public offering of Sula Vineyards was subscribed 2.33 times during December 12-14, 2022.
The company’s own brands sales volumes crossed 1 million cases, with Elite & Premium wines surging past the 5 lakh case-mark for the first time. The company recorded its highest ever annual revenues both for its own brands as well as the wine tourism business.
Last month brokerage firm CLSA initiated coverage on Sula Vineyards with ‘Buy’ rating on the stock, and target price of Rs 475 per share.
According to analysts at CLSA, Sula is well placed to leverage global consumers shift to low-alcohol beverage segment – beer and wine.
“With strong backend capabilities and a pan-Indian distribution network, Sula is India’s market leader in wines with a > 52 per cent market share in the 100 per cent grape wine category. The company’s healthy Ebitda margin ( > 29 per cent in 9mFY23), gives Sula the ability to invest in category development which would be key for long-term growth,” the brokerage agency added.
The brokerage agency expects the corporate to clock 17.5 per cent income CAGR and an 18.6 per cent EPS CAGR over the subsequent two years. However, they anticipate Ebitda margins to reasonable to 27.3 per cent by FY25CL, as the corporate focusses on class growth.
The firm had raised Rs 960 crore by way of preliminary public providing (IPO) by issuing shares at worth of Rs 357 per share. It made its inventory market debut on December 22, 2022. Post debut, the inventory hit a low of Rs 305.35 on December 26, 2022.
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