Sula Vineyard, a prominent Indian brand renowned for its wines and spirits, has garnered attention from investors and enthusiasts due to its innovative business approach. Beyond its core winemaking operations, Sula Vineyard is venturing into new realms, including music festivals,
Sporting events like the IPL and World Cup, aiming to fuse wine with entertainment on a grand scale. Let’s delve into the evolving market dynamics of Sula Vineyard and its ambitious aspirations for the future.
About Sula Vineyard
Incorporated in 2003 by Rajeev Samant, Sula Vineyards Limited has risen to become India’s largest wine producer and distributor by March 31, 2022. Their diverse wine portfolio includes renowned brands such as RASA and Dindori, with “Sula” leading the way. Rajeev Samant’s journey into the world of wine commenced at Stanford University and extended to working at Oracle in California. However, his return to India in the early ’90s was not initially tied to grapes and wine. The founding of Sula Vineyards in 1996, named in honor of his mother “Sulabha,” reflects the company’s deep-rooted Indian heritage. As the first Indian company to sport an Indian logo, Sula takes immense pride in its indigenous identity.
Sula Vineyards operates across two primary domains. The “Wine Business” encompasses wine production, wine and spirits imports, and distribution. The “Wine Tourism Business” offers immersive experiences, inviting wine enthusiasts to explore vineyard resorts and tasting rooms, fostering a deeper connection with wine.
Significantly, Sula Vineyards commands a substantial market share across various price segments within India’s wine industry and exports its products to over 20 countries. The company is also actively managing ongoing legal proceedings involving a total of Rs 125.07 crore in these litigations. Despite these challenges, Sula remains steadfast in its mission to share the joys of wine with enthusiasts worldwide.
Shareholding Pattern Analysis
| Dec 2022 | Mar 2023 | Jun 2023 | Sep 2023 | |
|---|---|---|---|---|
| 27.33% | 27.33% | 27.27% | 26.27% | |
| 7.42% | 5.86% | 6.78% | 20.61% | |
| 8.86% | 11.76% | 10.23% | 17.52% | |
| 56.39% | 55.06% | 55.73% | 35.60% | |
| No. of Shareholders | 2,08,138 | 1,51,880 | 1,33,957 | 1,53,180 |
Promoters continue to own approximately 27.33% of the company’s shares, with minimal recent changes. Foreign Institutional Investors (FIIs), who previously held around 7.42% of shares, saw a slight reduction to 5.86%. In June 2023, this increased marginally to 6.78%. Domestic Institutional Investors (DIIs) have increased their stake from 8.86% to 11.76% over the past year, although it decreased slightly to 10.23% in June 2023. The public remains the majority shareholder, holding about 55.73% of shares as of June 2023, following a slight dip from 56.39%. In December 2022, there were 208,138 shareholders, which decreased to 151,880 by March 2023 and further to 133,957 in June 2023.
Sula Vineyard’s unique blend of wine, innovation, and expansion into the realms of entertainment and sports reflect its dynamic journey in the Indian market. With a commitment to its roots and a vision for the future, Sula continues to captivate wine enthusiasts and investors alike.
Sula Vineyard Share Price Target 2024 To 2030
Sula Vineyard Share Price Target 2024
| When | Maximum Price | Minimum Price |
| March 2024 | 540.10 | 469.65 |
| April 2024 | 524.37 | 455.97 |
| May 2024 | 516.62 | 449.23 |
| June 2024 | 535.22 | 465.41 |
| July 2024 | 529.87 | 460.75 |
| August 2024 | 551.06 | 479.18 |
| September 2024 | 573.10 | 498.35 |
| October 2024 | 561.87 | 488.58 |
| November 2024 | 584.34 | 508.12 |
| December 2024 | 590.18 | 513.20 |
In March 2024, the maximum price for Sula Vineyard is projected to reach 540.10, while the minimum price is expected to be at 469.65. As we move into April, the maximum and minimum prices are forecasted to be 524.37 and 455.97, respectively. Continuing into May, the maximum price for Sula Vineyard is anticipated to be 516.62, with a minimum price of 449.23. June’s projections suggest a maximum of 535.22 and a minimum of 465.41 for Sula Vineyard. By July, the maximum price is predicted to be 529.87, and the minimum price is expected to be 460.75. As August approaches, the maximum and minimum prices for Sula Vineyard are forecasted to be 551.06 and 479.18, respectively. Moving into September, the maximum price is expected to rise to 573.10, with a minimum of 498.35 for Sula Vineyard. October’s projections suggest a maximum of 561.87 and a minimum of 488.58 for Sula Vineyard. By November, the maximum price for Sula Vineyard is anticipated to reach 584.34, while the minimum price is expected to be at 508.12. As we approach December, the maximum and minimum prices for Sula Vineyard are forecasted to be 590.18 and 513.20, respectively.
Sula Vineyard Share Price Target 2025
| When | Maximum Price | Minimum Price |
| January 2025 | 590.77 | 454.44 |
| February 2025 | 591.96 | 455.35 |
| March 2025 | 604.39 | 464.91 |
| April 2025 | 592.54 | 455.80 |
| May 2025 | 575.28 | 442.52 |
| June 2025 | 601.17 | 462.44 |
| July 2025 | 589.38 | 453.37 |
| August 2025 | 607.61 | 467.39 |
| September 2025 | 614.90 | 473.00 |
| October 2025 | 630.89 | 485.30 |
| November 2025 | 646.66 | 497.43 |
| December 2025 | 675.76 | 519.81 |
Sula Vineyard Share Price Target 2026 To 2030
| Year | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| 2026 | ₹776.87 | ₹543.81 |
| 2027 | ₹854.56 | ₹598.19 |
| 2028 | ₹1,196.38 | ₹598.19 |
| 2029 | ₹1,035.83 | ₹517.91 |
| 2030 | ₹1,346.58 | ₹942.60 |
In 2026, the maximum price is expected to reach ₹776.87, while the minimum price is forecasted to be ₹543.81. Moving into 2027, prices are projected to rise, with the maximum reaching ₹854.56 and the minimum increasing to ₹598.19. By 2028, both the maximum and minimum prices are anticipated to experience a significant surge, reaching ₹1,196.38 and ₹598.19, respectively. Looking ahead to 2029, the maximum price is forecasted to be ₹1,035.83, with the minimum expected to rise to ₹517.91. As we progress into 2030, prices are predicted to continue climbing, with the maximum projected to hit ₹1,346.58 and the minimum reaching ₹942.60.
Sula Vineyard Financial Condition (Last 5 Years)
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | |
| Sales + (Crore) | 501 | 387 | 306 | 390 | 493 |
| Expenses+ (Crore) | 423 | 333 | 249 | 283 | 336 |
| Operating Profit (In Crore INR) |
78 | 54 | 57 | 107 | 156 |
| OPM % | 16% | 14% | 19% | 27% | 32% |
| Other Income + (Crore) | 3 | 0 | 0 | 3 | 5 |
| Interest + (Crore) |
24 | 31 | 32 | 21 | 19 |
| Depreciation + (Crore) |
19 | 34 | 25 | 22 | 24 |
| Profit before tax + (Crore) |
38 | -12 | 0 | 66 | 118 |
| Tax % | 49% | 32% | -130% | 26% | 25% |
| Net Profit + (Crore) | 20 | -8 | -1 | 49 | 88 |
| EPS+ (Crore) | 13.07 | -5.42 | -0.42 | 6.22 | 10.48 |
| Dividend Payout % | 0% | 0% | 0% | 39% | 80% |
Sula Vineyard’s financial journey over the last five years has been quite the rollercoaster, hasn’t it? Starting with a bit of a bump in 2019, they managed to turn things around quite impressively by 2023.
Sula Vineyard experienced fluctuations in sales revenue, with a slight increase from ₹501 crore in March 2019 to ₹493 crore in March 2023. Despite varying expenses, there was an overall upward trend, except for a decrease noted in March 2021.
The Operating Profit demonstrated a notable increase, rising from ₹78 crore in 2019 to ₹156 crore in 2023, indicating enhanced operational efficiency. Additionally, Other Income grew modestly from ₹3 crore in 2019 to ₹5 crore in 2023, contributing positively to the company’s profitability.
The Profit Before Tax showcased significant growth, reaching ₹118 crore in March 2023 from ₹38 crore in March 2019. This resulted in a noteworthy increase in Net Profit, escalating from ₹20 crore in 2019 to ₹88 crore in 2023.
The trajectory of Earnings Per Share (EPS) mirrored the company’s improved financial performance, moving from negative figures to ₹10.48 in March 2023.
An interesting shift was observed in the Dividend Payout, which escalated from 39% in March 2022 to 80% in March 2023, indicating the company’s confidence in its financial stability and profitability.
Overall, Sula Vineyard displayed considerable progress across various financial indicators, showcasing improved efficiency, profitability, and investor confidence over the five-year period.
FAQs
What is the current share price of Sula Vineyard?
As of 21st March 2024, the current share price of Sula Vineyard is 537.
What is the market capitalization of Sula Vineyard at present?
Sula Vineyard is currently valued at 4,535 Cr in terms of market capitalization.
How has Sula Vineyard’s Return on Equity (ROE) performed over different time frames?
Sula Vineyard’s ROE averaged 8% over the past 5 years, indicating steady performance. However, in the last 3 years, ROE improved to 12%, with the latest available data showing an ROE figure of 18.3%.
What are the share price targets for Sula Vineyard by 2025?
The share price targets for 2025 for Sula Vineyard display a consistent upward trajectory, ranging from ₹469.65 in January to ₹675.76 in December.
What are the share price targets for Sula Vineyard by 2030?
The share price targets of Sula Vineyard could reach ₹1,346.58 by the end of 2030.
Should One Invest In Sula Vineyard?
Sula Vineyard presents both strengths and weaknesses as an investment option.
On the positive side, it has demonstrated strong profit growth, with an impressive 36.8% CAGR in the last five years. The company also offers a healthy 39.4% dividend payout, making it attractive to income-oriented investors. Efficient receivables management, evident in the reduced debtor days from 97.8 to 77.6 days, enhances cash flow.
Sula Vineyards actively promotes wine consumption through tastings, partnerships, and events, potentially boosting profitability. Expectations of achieving around 27% EBITDA margins and expanding into Tier 1 and Tier 2 cities provide optimism.
However, there are concerns to note. The stock’s high valuation, at 7.35 times its book value, may indicate overpricing. Modest sales growth of 3.34% over the past five years raises questions about market expansion. A low promoter holding of 27.3% suggests less control from founders. Additionally, a recent low 12.0% Return on Equity (ROE) indicates potential inefficiency in using shareholder equity.
In summary, Sula Vineyard offers potential for profit, but its high valuation, limited sales growth, low promoter holding, and low ROE come with risks. Prospective investors should research thoroughly, assess their investment goals and risk tolerance, and consider diversification. Seeking advice from a financial advisor can provide valuable insights for a well-rounded investment strategy.
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