These 2 recently listed stocks have zoomed up to 44% from December lows

Landmark Cars hit a new high of Rs 622.45, surging 44% from its December low of Rs 433.20, while Sula Vineyards rallied 40% from its low of Rs 305.35.

Shares of the recently listed companies, Landmark Cars and Sula Vineyards continued their upward journye, surging 6 per cent on the BSE in Thursday’s intra-day trade in an otherwise subdued market. The S&P BSE Sensex was down 0.13 per cent at 60,969 at 12:32 PM.

Both these stocks have rallied up to 44 per cent from their respective lows after making a weak market debut in last week of December 2022.

Shares of Landmark Cars hit a new high of Rs 622.45, soaring 6 per cent in intra-day trade, and have surged 12 per cent in past two days after the company said it recorded a strong 41.29 per cent growth in total revenue from operations at Rs 3,384 crore for the nine months ended December 2022 (9MFY23). The company had made its stock market debut on December 23, 2022.

Landmark Cars is now trading 23 per cent higher against its issue price of Rs 506 per share. It has bounced 44 per cent from its low of Rs 433.20, touched on December 26, 2022.

"The nine-month (April to December) period witnessed a strong revenue growth, with multiple tailwinds in the form of rising income levels, new models launches by our partner OEM (Original Equipment Manufacturer) and changing lifestyle preferences leaning towards a rise in premium/luxury automobile ownership. The highly profitable after-sales business showed strong growth in the same period," Landmark Cars said in its business update.

The vehicle sales revenue in 9MFY23 could have been higher as the sales was impacted by chip shortage and the supply chain disruption due to geo-political situation. The total revenue from after-sales service and spare parts in the previous year was skewed in favour of the second half of the year due to partial Covid-19 lockdown in the first half, the company said.

Landmark Cars is a leading premium automotive retail business in India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen and Renault. Landmark Cars also has a commercial vehicle dealership for Ashok Leyland in India. It has a presence across the automotive retail value chain, including sales.

Meanwhile, shares of Sula Vineyards too soared 6 per cent to Rs 429.15 on the BSE in today’s intra-day trade. In past four trading days, the stock has rallied 32 per cent after the company said it recorded highest-ever quarterly gross billings overall, both for its own brands as well as wine tourism revenues during October-December quarter (Q3FY23).

The stock of the country’s largest wine producer, with over 50 per cent share in the domestic wine business, hit a record high of Rs 429.35 on Wednesday, January 18. With past four days rally, currently, Sula Vineyards is trading 20 per cent higher against its issue price of Rs 357 per share. It has bounced back 40 per cent from its low of Rs 305.35, touched on December 26. The company made its stock market debut on December 22, 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.