Sula Vineyards shares skyrocket 17%, hit new high as CLSA revises target price; here's what the brokerage expects
Sula Vineyards, the largest wine producer in India, saw a massive rise in its stock price in today's trade, increasing by almost 17.30% to reach a new historic high of ₹649.95 apiece, following an 11.40% jump in the previous trading session. Today's surge came in response to global brokerage firm CLSA's positive outlook on the company.
The brokerage in its latest note has upgraded the rating on the stock to 'Buy' from an earlier rating of 'Neutral' and also lifted the target price to ₹863 apiece from a previous target price of ₹571 apiece, CNBV-TV18 reported. Also Read: Waaree Renewable Technologies stock hits new record high, zooms 50% in just 6 sessions; here's why This revised target price indicates an upside of 55.77% for the stock from its previous closing price of ₹554.
The brokerage estimates wine consumption in India to grow at a CAGR of 15% over the next 10 years, driven by the rising middle class, the fast growth of restaurants, and rising incomes. The brokerage underscores that Sula Vineyards stands to benefit significantly from this trend, given its dominant market share in the wine industry and its leading position in wine tourism.
Wine tourism serves as both a revenue driver for the company and a catalyst for heightening interest in wines within a regulatory environment where advertising alcoholic beverages is restricted, as highlighted by the brokerage. Also Read: RIL funding fuels rally in Alok Industries shares by 65% in 5 straight sessions On December 27, the company said in an exchange filing that its Wine Tourism business set new records for visitor numbers, revenues, and tastings over the long Christmas weekend.
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