SHARE PRICE OF INDIA’S SULA VINEYARDS ROSE 33% IN 10 DAYS ON STRONG SALES GROWTH
By Siulan Law Mathews DipWSET
Source: Sula Vineyards
Share price of India’s leading winery Sula Vineyards has witnessed a sharp rise of 33 percent since it reported strong business growth in the December quarter.
The winery’s share price rose a further 2 percent in early trading today to hit a fresh high of INR432 in intraday trade.
Sula Vineyards is the only publicly listed wine producer in India. It made its debut on the domestic bourses on 22 December 2022 and successfully raised INR9.6 billion (USD118 million).
The company released its sales update for the December quarter on 13 January, which showed that the company recorded its highest-ever quarterly gross billings overall, both for its own brands as well as the wine tourism business.
The company reported a 13 percent year-on-year growth in its own brands sales at INR1.87b in December quarter, compared to INR1.66b in the year before, driven by strong volume and higher realisations.
For the nine months ended on 31 December, 2022, gross billings of its own brands jumped 28 percent to INR3.92b against INR3.06b in the same period of year before.
Meanwhile, the wine tourism business posted a growth of 13 percent to INR230m in the quarter, from INR203m in the corresponding period in previous year.
For the nine months ending 31 December 2022, it rose 48 percent to INR586m from INR397m in the same period of previous year.
The initial public offering of the Nashik-based company received lower-than-expected response from investors with the issue subscribing by just 2.33 times.
Sula Vineyards shares had a tepid debut as the stock opened at INR358 apiece and went on to nosedive further on its listing date and finished at INR331.15 levels.
Sell-off in the company’s shares continued and the stock made its life-time low of INR305 on the second trading day on 23 December 2022.
However, the share rebounded from this level and went on to hit its fresh high of INR432 today after continuous rises since the sales update for the December quarter on 13 January.
Established in 2003, Sula Vineyards is India's largest and only listed wine producer, with over 50 percent share in the domestic wine business.
Apart from its flagship brand Sula, the company also owns some popular brands including RASA, Dindori, The source, Madera & Dia and Satori.
(the writer can be contacted at: firstname.lastname@example.org)
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