Shares of Sula Vineyards jump 6% after Q1FY24 update!

Sula Vineyards Limited, India’s largest and only listed wine producer with over 50% share in the domestic wine market announced a strong Q1FY24 sales update. The company has recorded its highest ever Q1 net revenues overall as well as for its brands and the wine tourism business.  

Today the shares of the company surged by 6.26% in early trade. In the last trading session, the scrip closed at Rs 444.90 and today it opened at Rs 458.05. Currently, it is trading at Rs 462.40, up by 3.93%. The company touched an intraday high at Rs 472.75 up by 6.26%, and it has an intraday low of Rs 452.05.  

The company has a 52-week high of Rs 489.60 and a 52-week low of Rs 305.55. The company has a market capitalization of around Rs 3,900 crore. Over the past one-year shares of the company have provided a return of approximately 39%. 

The own brand’s segment recorded impressive net revenues of Rs 103.5 crore in Q1 FY24 from Rs 83.2 crore in the same period previous year, reflecting a substantial year-on-year growth rate of 24%. This exceptional performance highlights the strong demand for Sula’s wine brands, with the Elite and Premium lines leading the way with a remarkable 30% growth. 

Sula’s wine tourism business also contributed to its overall growth, generating net revenues of Rs 11.4 crore in Q1 FY24 from Rs 10.3 crore in the same period the previous year, representing a growth rate of 11%. The company also said wine tourism has seen a 70% jump in visitor numbers to Domaine Sula winery, just outside Bengaluru. During the quarter, in keeping with Sula’s premiumisation focus, the company sold off its lowest-priced Heritage brand which was only available in the state of Karnataka. 

Over the last two decades, Sula Vineyards has played a pivotal role in building the Indian wine industry with wineries in Maharashtra and Karnataka.