The stock of the country’s largest wine producer, with over 50 per cent share in the domestic wine business, traded closer to its 52-week high of Rs 363.40, touched on December 22, 2022.
At 10:25 AM; Sula Vineyards quoted 9.8 per cent higher at Rs 357.45, as compared to 0.26 per cent rise in the S&P BSE Sensex. The average trading volumes at the counter jumped over 10-fold with a combined 2.8 million shares changing hands on the NSE and BSE.
The company had raised Rs 960 crore through initial public offering (IPO) by issuing shares at price of Rs 357 per share. It made its stock market debut on December 22, 2022. Post debut, the stock hit a low of Rs 305.35 on December 26, 2022.
Sula Vineyards said the company witnessed a strong growth of 13 per cent year-on-year (YoY) in the quarter in its own brands gross billings at Rs 187.20 crore, led by strong growth in volumes as well as realisations.
Wine tourism has grown YoY 13 per cent (Rs 23.0 crore) with a 48 per cent (Rs 58.60 crore) improvement in the nine-month period of FY23 over the same period for FY22.
With the company’s new 2.5 million liter cellar up and running in time for the 2023 grape harvest – which is looking excellent in terms of quantity and quality – the company is poised to continue its growth story and leadership in the Indian wine industry, the management said.
Sula Vineyards is India’s largest wine producer and seller (52 per cent market share in FY22). The company produces 56 different labels of wine at four-owned and two-leased production facilities in Maharashtra and Karnataka. Sula has the largest distribution network among wine companies in India ~13000 retail touchpoints in India. The company’s owned brand contribution has been steadily increasing from 63.6 per cent in FY20 to 83.9 per cent in FY22. However, amid worries on an upcoming Covid wave, any imposition of restrictions on travel may prove to be a deterrent for the hospitality sector.
Post pandemic, Sula has shown strong growth on the profitability front from FY22 onwards, which the management expects to stay range bound (due to higher premiumisation and own brands sales). The stock is a pure play on the wine sector, which currently sits on a low base (less than 1 per cent of alcobev industry) but is expected to surpass industry growth due to higher acceptability, affordability, perceived health benefits, etc, analysts at ICICI Securities said in its IPO note.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →
Quarterly Starter
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Access to Exclusive Premium Stories Online
Over 30 behind the paywall stories daily, handpicked by our editors for subscribers


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app