Sula Vineyards gains 4% on double-digit sales growth in Q2

Shares of Sula Vineyards rose 4 percent in trade on October 12 as the wine producer announced double-digit sales growth in July to September quarter and the first half of current financial year. Sula also announced its highest ever Q2 net revenues overall.

Sula Vineyard’s own brands clocked a year-on-year growth of 14 percent in net revenue, from Rs 102 crore in the year-ago period to Rs 116.2 crore in Q2FY24. On a half-year basis, the first half of the current fiscal year came in at Rs 209.3 crore, from Rs 172.1 crore in H1FY23.

The wine tourism business’ net revenues rose 26 percent YoY to Rs 12.1 crore, while the first half of the financial year grew 19 percent YoY Rs 23.6 crore.

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As of 12.40 p.m., shares of the company were trading at Rs 474.95, gaining 1.79 percent on the BSE.

Sula CEO Rajeev Samant said, “We are pleased to announce yet another quarter of double-digit growth, both in our all-important own brands and wine tourism businesses. Our focus on premiumization continues to pay off, with our elite and premium wines leading the way, bucking the slowing trend in discretionary spending in the overall economy during Q2.”
Additionally, the company is anticipating a strong harvest once again despite the irregular monsoons, which “bodes very well for meeting the increasing demand for their elite and premium wines.

“The future looks even brighter as we achieved our highest ever footfall on Oct 01, 2023, with a record 3,8501 wine adventurers passing through our gates!” added Samant.

Sula Vineyards shareholding pattern, stock price movement

Sula Vineyards shares have gained 52.37 percent from its listing price of Rs 361, from December 22, 2023. The company’s market capitalization is Rs 3,998.85 crore.

The stock’s RSI is at 43.5, indicating the counter is neither in the oversold nor overbought zone.

As per June’s shareholding records, the company’s promoters hold 27.3 percent of the shares. FIIs own 6.8 percent, while DIIs account for 10.2 percent. The public has a 55.7 percent stake in Sula.

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