Shares of India’s leading wine producer – Sula Vineyards gained 9.7% on Friday’s intraday trades, following an announcement that the company has appointed a new CFO, launched three luxury villas and won medals for India.
Its shares reached a 52-week high of ₹ 474.90 apiece and settled at 457.50 apiece on Friday.
Rajeev Samant, Founder and CEO of Sula Vineyards said that the company identified a new Chief Financial Officer, who will join in August and has a rich experience in the consumer sector.
Moreover, he said that the company Sula Vineyards Ltd has added three stylish villas overlooking the picturesque Gangapur Lake in Nasik, modelled on Sula Vineyards’s iconic Sky Villa which is always over-booked. The company hopes that more guests can experience the joy of a vineyard retreat, with the addition of new villas.
In another development, the company said that its The Source Chenin Blanc Reserve won India’s first-ever wine medal at the prestigious Concours Mondial de Bruxelles 2023, arguably the country’s finest dry Chenin Blanc, making it a proud day for India. Sula’s Rasa Syrah and Dindori Reserve Chardonnay also won two golds at the 2023 Paris Wine Cup.
With a market capitalization of ₹ 3,649 crores, Sula Vineyards is a small-cap stock. It has an ideal return on equity of 18.12% and an ideal debt-to-equity ratio of 0.38. Its shares were trading at a price-to-earnings ratio of 42.23, which is higher than the industry average of 27.27 indicating that the stock might be overvalued as compared to its peers. It could also mean that investors are willing to pay a higher price for its future earnings.
Retail investors hold a 55.05% stake in the company, followed by promoters with 27.33%, mutual funds with 8.13% and foreign institutions with 5.86% and other domestic institutions with 3.63%.
The company recently reported a consolidated net profit of ₹14.2 crore for the March quarter, higher by 5%, as against ₹ 13.5 crore in the corresponding period last year. Its revenue from operations increased by 7% year-on-year (YoY) to ₹ 120 crore in the March quarter, as compared to ₹ 112 crore in the corresponding quarter of last year.
Written by Simran Bafna
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