Sula Vineyards is a popular wine producer located in Nashik, Maharashtra, India. It was founded in 1999 by Rajiv Samant, a Stanford University engineer who returned to India after working in Silicon Valley. Sula Vineyards has won numerous awards for its wines both domestically and internationally.
They produce different types of wines like red, white, sparkling, dessert wine etc. The most popular wines are Sula red wine Chenin blanc, Sula sauvignon blanc, Sula shiraz and Sula cabernet shiraz, etc.
Hence, it has great potential for future growth and brokerage firms are eyeing this stock and have also initiated buy ratings on the stock.
A target price of Rs 475 has been fixed for this. Its shares have gained nearly 7.5% in the last two trading days. Sula Vineyards a leading winemaker, has gained 11.25% in two trading days.
However, the stock finally closed at Rs 356.25 per share, up 4.63%. At the same time, it reached a level of Rs 371.25 on the NSE intraday.
Sula Vineyards share price target
In fact, the top brokerage firm has initiated coverage on the stock with a buy rating. This is the reason why the shares of the company are rising. The top experts have kept a target price of Rs 485 on the stock. Its shares have gained nearly 8.5% in the last two trading days.
Analysts believe Sula is well positioned to capitalize on global consumer preferences in the low-alcohol beverage segment, namely beer and wine. The company has a distribution network across India.
Sula is India’s market leader in wine with a 52% market share in the 100% grape wine category. Its good EBITDA margin gives Sula the ability to invest in category development, which is critical for long-term growth.
The brokerage firm expects a 17.5 per cent revenue and 18.6% earning per share (EPS) over the next two years. But the EBITDA margin may fall to 27.3% by FY25CL as the company focuses on category growth.
Fundamentals of Sula Vineyards
| Company Name | Sula Vineyards |
| Industry | Winery |
| Country | India |
| Primary Exchange | NSE/BSE |
| Founded | 1999 |
| Traded Volume | 895,100 |
| Market Cap | 3019 Cr |
| Revenue | 209.19 Cr (11.69 ↑) |
| Net Income | 39.21 Cr |
| Net Profit Margin | 17.95% |
| EPS (Diluted) | 4.77 (6.47 ↑) |
| PE Ratio | 41.79 |
| Dividend Yield | — |
| ROE | 14.90% |
| Industry PE | 35.63 |
| Debt to Equity | 0.51 |
| Open | 353.00 |
| Low | 350.00 |
| High | 361.85 |
| 52 Week Low | 305.35 |
| 52 Week High | 432.40 |
| Buy / Sell / Hold | Hold |
| Face Value | 2 |
| Official Website | sulavineyards.com |
About the company
The company is a popular tourist destination for visitors for its vineyards and winery. Visitors can know the winemaking process and taste different wines. The winery also has a restaurant/resort where visitors can stay and enjoy the beautiful landscape.
Sula Vineyards is the largest liquor manufacturing company in India. The company has a 52.5% market share and has six (four owned and two leased) production firms in Maharashtra and Karnataka. Sula has the largest distribution network among liquor companies in India. The company has 13,000 retail touchpoints in India.
In recent years, Sula Vineyards has expanded its operations and has become a major player in the Indian wine industry. This has helped put Nashik on the map as a wine-growing region and has contributed to the growth of wine tourism in India.
The company brought its IPO in December 2022, through which Sula Vineyards raised Rs 960 crore. However, its listing remained almost flat and investors made a meagre profit of just 1.12%. Its listing was done at a price of Rs 361 while its issue price was Rs 357.
Shareholding pattern
| Promoters | 27.31% |
| Mutual Funds | 5.47% |
| Foreign Institutions | 7.39% |
| Domestic Institutions | 3.33% |
| Retail and Others | 56.41% |
Disclaimer: The share price forecasts on our website (bankshala.com) are for general information only. We are not SEBI-registered financial advisors and no part of the website content provided by us should be considered financial advice. Before investing in any company you should do your own research and analyze and consult your financial advisor before taking any decision.
