Sula Vineyards shares rise 2% as HDFC MF, Societe Generale, and others buy 7.06% stake
Sula Vineyards rose 2% to Rs 499 in Friday's intraday trade on BSE after HDFC Mutual Fund, Societe Generale, Morgan Stanley Asia Singapore, and Ghisallo Master Fund bought a 7.06% stake in the winemaker after foreign investor Verlinvest Asia sold a 12.56% stake.
The acquisition was facilitated through open market transactions on August 31.
At 11.33 a.m., the stock was trading 1% higher at Rs 494.8 on BSE. On a year-to-date basis, the stock has surged 50%, while it has also risen nearly 40% in the last six months.
The firm distributes wines under a bouquet of popular brands such as Sula, its flagship brand, besides other popular brands like RASA, Dindori, The Source, Satori, Madera & Dia.
Sula Vineyards is majority-owned by public shareholders with a 72.7% stake, while promoters own the rest of 27.2%.
Among the public shareholders, mutual funds have a 9% stake, while prominent foreign investors Goldman Sachs, and ADIA also have holdings in the company.
In the recent first quarter, Sula Vineyards' consolidated net profit rose 24% year-on-year (YoY) to Rs 13.68 crore.
It was Rs 11 crore in the last year quarter. Its revenue from operations jumped 21% to Rs 117 crore for the April-June period.
The company which controls over 50% share in the domestic wine market, said its focus on premiumisation has paid off with its elite and premium wines clocking over 35% growth this quarter.
As per Trendlyne data, the average target price of the stock is Rs 538, which shows an upside potential of 9% from the current market prices.
The consensus recommendation from three analysts for the stock is a 'Buy'.
Technically, the stock's day RSI (14) is at 47.2. The RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data
