This S&P BSE Smallcap Stock rose 3.9% within the first hour of markets opening after reporting robust Q2 and H1 FY2024 performance. The company has a market cap of Rs. 3,994 crore and is 12% away from its 52 week high, trading at Rs. 473.75 versus Rs. 466.60 at previous close.
The stock is seeing volumes that are over 2.3x the monthly average. The company’s shareholding has significant institutional holding with 10% held by DIIs and 7% held by FIIs. Key DII holders include Mukul Agarwal & SBI Group.
In a filing dated 11th October, Sula Vineyards Ltd (“Sula Vineyards”) announced its Q2 results. Sula Vineyards is India’s largest and only listed wine producer, with over 50% share in the domestic wine market, announced double-digit Q2 & H1 FY24 sales growth. The company announced its highest ever Q2 net revenues overall as well as for the priority Own Brands and Wine Tourism businesses.
Q2 Net Revenue up ~11% YoY; H1 Net Revenue up ~15% YoY. Segment wise, Elite and Premium Own Brands lead the way; Q2 up ~18% YoY; H1 up 24% YoY. In other good news, the company is anticipating a strong harvest once again despite the irregular monsoons, which bodes very well for meeting the increasing demand for the company’s Elite and Premium wines. During the quarter, Sula Vineyards also expanded the iconic Nashik winery Tasting Room, to keep up with the continuing surge in visitor numbers.
Commenting on the Q2 trading update, 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 with ~18% YoY growth in Q2 and ~24% YoY growth in H1, bucking the slowing trend in discretionary spending in the overall economy during Q2.
I am also very pleased to announce the launch of our first Pinot Noir from The Source range, Sula’s fastest-growing premium wine brand. The Source Pinot Noir is now available in Maharashtra and would be launched in other key markets in FY25.”
Wine and other alcoholic beverages are produced, bought, imported, distributed, and sold by Sula Vineyards. Sula produces and sells more than 1 million cases of wine throughout India from its wineries in Maharashtra and Karnataka. Over 3 lakh people now annually visit Sula’s renowned Nashik estate, which was the first of its kind in India to promote wine tourism.
Written by Sandeep R
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