Sula Vineyards Ltd - Stock Valuation and Financial Performance

BSE: 543711 | NSE: SULA | Breweries & Distilleries | Small Cap

Sula Vineyards Share Price

547.10 1.60 0.29%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Sula Vineyards

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Sula Vineyards stock performance -

mw4me loader
P/E Ratio (SA):
47.16
Market Cap:
4,604 Cr.
52-wk low:
348.2
52-wk high:
699.8

Is Sula Vineyards Ltd an attractive stock to invest in?

1. Is Sula Vineyards Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Sula Vineyards Ltd is a average quality company.

2. Is Sula Vineyards Ltd undervalued or overvalued?

The key valuation ratios of Sula Vineyards Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Sula Vineyards Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Sula Vineyards Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Sula Vineyards:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Sula Vineyards Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 6.1%8%8.2%4.5%6%6.2%2.4%3.9%10.4%14.9%-
Value Creation
Index
-0.6-0.4-0.4-0.7-0.6-0.6-0.8-0.7-0.30.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 223273335311418501387306390493579
Sales YoY Gr.-22.2%22.7%-7%34.3%19.8%-22.8%-21%27.5%26.4%-
Adj EPS 22.631.42.52.6-0.90.46.410.511.6
YoY Gr.-28.8%17.3%-52.8%79.4%1.2%-134.4%NA1573.7%64.9%-
BVPS (₹) 25.533.736.2424445.743.343.352.565.970.4
Adj Net
Profit
13.318.721.910.318.619.2-6.62.95088.498
Cash Flow from Ops. 16.710.512.2117.518.334.711377.578.8-
Debt/CF from Ops. 3.35.17.4158.512.615.110.32.62.82.3-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 9.2%3.3%8.4%26.4%
Adj EPS 20.4%32.9%NA64.9%
BVPS11.2%8.4%15.1%25.6%
Share Price - - - 52.6%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
8.18.98.53.65.95.7-20.913.518.217
Op. Profit
Mgn %
11.814.615.313.113.815.713.818.627.531.729.7
Net Profit
Mgn %
66.96.63.34.53.8-1.70.912.817.916.9
Debt to
Equity
0.30.20.30.50.70.81.10.90.50.3-
Working Cap
Days
271261270313300282360429333309135
Cash Conv.
Cycle
-1,4771371371551411291681831329538

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 17.00%

Debt to equity has declined versus last 3 years average to 0.33

Sales growth is good in last 4 quarters at 14.70%

Sales growth has been subdued in last 3 years 8.39%

Net Profit has been subdued in last 3 years 0.00%

Latest Financials - Sula Vineyards Ltd.

Standalone Consolidated
TTM EPS (₹) 11.6 11.1
TTM Sales (₹ Cr.) 579 597
BVPS (₹.) 70.4 67.4
Reserves (₹ Cr.) 577 552
P/BV 7.75 8.10
PE 47.16 48.98
From the Market
52 Week Low / High (₹) 348.15 / 699.75
All Time Low / High (₹) 305.55 / 699.75
Market Cap (₹ Cr.) 4,604
Equity (₹ Cr.) 16.9
Face Value (₹) 2
Industry PE 70.9

Management X-Ray of Sula Vineyards:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *21.909.569.560.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Sula Vineyards

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales223273335311418501387306390493
Operating Expenses 197233285271361423336252285337
Manufacturing Costs0111416141855456478
Material Costs-88710912714316698666176
Employee Cost 0364450586060546476
Other Costs 20599118781451791228796107
Operating Profit 2640504158785154105156
Operating Profit Margin (%) 11.8%14.6%15.0%13.1%13.8%15.6%13.2%17.6%27.0%31.6%
Other Income 0212333656
Interest 03712172431322119
Depreciation 691012151934252224
Exceptional Items 0000000-200
Profit Before Tax 213035192938-12066118
Tax 7111481019-401730
Profit After Tax 131921101920-8-14988
PAT Margin (%) 6.0%6.8%6.4%3.3%4.4%3.9%-2.1%-0.2%12.5%17.9%
Adjusted EPS (₹)2.02.62.91.42.52.6-1.1-0.16.210.5
Dividend Payout Ratio (%)0%4%14%29%40%23%-55%0%79%80%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 172248266309324343325326412555
Share Capital 14151515151515151617
Reserves 158233251294310328310311397538
Minority Interest0000000000
Debt535388156212263337296182137
Long Term Debt33220255979593847
Short Term Debt50508613618720325823714490
Trade Payables29384567616982526478
Others Liabilities 3157608277879973129177
Total Liabilities 285395459614674761843747787947

Fixed Assets

Gross Block117172206262302363429412456527
Accumulated Depreciation2737471227468095114133
Net Fixed Assets89135160250276317349317342394
CWIP 0101120012
Investments 13232121212626212727
Inventories91100111138129138159135151169
Trade Receivables52628611414415613411091105
Cash Equivalents 88101715436451529
Others Assets3166717488118139118160221
Total Assets 285395459614674761843747787947

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 17111211718351137779
PBT 213035192938-12066118
Adjustment 11101723304366584739
Changes in Working Capital -7-22-30-32-37-48-949-19-50
Tax Paid -8-7-9-8-4-15-117-17-28
Cash Flow From Investing Activity -17-66-35-54-59-59-43-12-39-69
Capex -13-57-33-34-45-57-44-16-40-67
Net Investments 0-1020000-3-2-7
Others -42-4-19-14-21735
Cash Flow From Financing Activity -5552559403041-96-69-4
Net Proceeds from Shares 0590018125696
Net Proceeds from Borrowing 0000000-20-219
Interest Paid 0-3-7-11-16-24-27-31-19-16
Dividend Paid 00-40-4-9-110-19-45
Others -5-13570595577-47-66-48
Net Cash Flow -6026-2-11325-316
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)8.098.918.33.555.865.88-2.44-0.1913.2318.25
ROCE (%)9.4412.5112.757.348.9210.662.984.8913.9720.15
Asset Turnover Ratio0.820.830.780.640.650.70.530.420.550.61
PAT to CFO Conversion(x)1.310.580.570.10.890.9N/AN/A1.570.9
Working Capital Days
Receivable Days8074811051131101241318767
Inventory Days14712411513111697127159125110
Payable Days-1,218140139162164143281372345340

Sula Vineyards Ltd Stock News

Sula Vineyards Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Sula Vineyards on 28-Mar-2024 16:01 is ₹547.1.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of Sula Vineyards stood at ₹4,604.
The latest P/E ratio of Sula Vineyards as of 28-Mar-2024 16:01 is 47.16.
The latest P/B ratio of Sula Vineyards as of 28-Mar-2024 16:01 is 7.75.
The 52-week high of Sula Vineyards is ₹699.8 and the 52-week low is ₹348.1.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Sula Vineyards is ₹579.3 ( Cr.) .

About Sula Vineyards Ltd

The Company was incorporated as “Nashik Vintners Limited” as a public limited company under the Companies Act, 1956, pursuant to a certificate of incorporation issued by the Registrar of Companies, Maharashtra at Mumbai (“RoC”) on February 26, 2003. The Company was granted the certificate for commencement of business on March 6, 2003 by the RoC. The name of the Company was changed to “Nashik Vintners Private Limited”, pursuant to a fresh certificate of incorporation consequent on change of name issued by the RoC on January 24, 2006. Subsequently, the name of the Company was changed to “Sula Vineyards Private Limited”, pursuant to a certificate of incorporation pursuant to change of name issued by the RoC on August 11, 2014. On the conversion of the Company to a public limited company, pursuant to a resolution passed by the company’s Shareholders on December 27, 2021, its name was changed to “Sula Vineyards Limited” and a fresh certificate of incorporation was issued by the RoC on February 11, 2022. 

Sula Vineyards is India’s largest wine producer and seller. The company is the market leader across all four price segments, being ‘Elite’, ‘Premium’, ‘Economy’ and ‘Popular’. Furthermore, the company is also recognized as the market leader across wine variants, including red, white and sparkling wines.

Business area of the company

The company’s business can be broadly classified under two categories (i) the production of wine, the import of wines and spirits, and the distribution of wines and spirits (the “Wine Business”); and (ii) the sale of services from ownership and operation of wine tourism venues, including vineyard resorts and tasting rooms (the “Wine Tourism Business”). However, since the Wine Tourism Business is incidental and complements the overall Wine Business, the Company’s chief operating decision makers (which includes its CEO, CFO, COO and members of the board) monitor and review the operating result of the Group as a single operating segment of manufacture, purchase and sale of alcoholic wines and spirits.

The company distributes wines under a bouquet of popular brands. In addition to the flagship brand “Sula,” popular brands include “RASA,” “Dindori”, “The source,” “Satori”, “Madera” & “Dia” with its flagship brand “Sula” being the “category creator” of wine in India. Currently, the company produces 56 different labels of wine at four owned and two leased production facilities located in the Indian states of Maharashtra and Karnataka.

Key awards, accreditations and recognition

  • 2016: ‘Best contribution to Wine and Spirits Tourism’ award at the Drinks Business Awards 2016.
  • 2019: The Company’s wines were awarded 11 awards under the ‘Best in Show’, ‘Gold’ and ‘Silver’ categories at the 3rd edition of the India Wine Awards, 2019.
  • 2020: The Company’s wines were awarded 10 awards under the ‘Silver’ and ‘Bronze’ categories at the Decanter World Wine Awards, 2020.
  • 2020: ‘Most Innovative Use of HR Initiatives During the Pandemic’ award at the HRAI Awards, 2020 by the HR Association of India.
  • 2021: ‘Great Workplace’ certificate issued by the Great Place to Work Institute, India.
  • 2022: The Company’s wine, Sula Sparkling Brut Tropicale, was awarded a gold medal at the International Wine Challenge, 2022.
  • 2022: The Company’s wines were awarded 9 awards under the ‘Silver’ and ‘Bronze’ categories at the Decanter World Wine Awards, 2022.
  • 2022: The Company’s wine, RASA Cabernet Sauvignon was awarded a silver medal at The Global Cabernet Sauvignon Masters 2022.

Major events and milestones

  • 2003: Incorporated as Nashik Vintners Limited.
  • 2005: Launched India’s first wine tasting room at winery in Nashik, Maharashtra.
  • 2008: Launched “SulaFest” – India’s first wine themed music festival at Nashik, Maharashtra facility Opened the country’s first vineyard resort.
  • 2015: Acquired 50% of the share capital of Remy Sula India Private Limited (subsequently renamed as ASPL).
  • 2015: ASPL became a wholly owned subsidiary of the Company.
  • 2017: Acquired the winery unit business of Heritage Grape Winery Private Limited.
  • 2018: Acquired 51.00 % of the paid-up share capital of PADPL.
  • 2020: Launched ‘Dia’, India’s first wine-in-a-can.
  • 2020: Most visited vineyard in India, with approximately 368,000 people visiting its vineyards in Fiscal 2020.
  • 2021: The company’s Subsidiary, ASPL, acquired the winery unit business of York Winery Private Limited.
  • 2021: Divested of entire stake from PADPL, aggregating to 51 % of its paid-up share capital.
  • 2021: Largest distribution network among wine companies in India, with close to 13,000 retail touchpoints across the country in 2021.
  • 2021: Highest number of D2C sales in the Indian wine industry in Fiscal 2021.
  • 2022: Sula International Limited, the company’s erstwhile subsidiary (a company which was incorporated in U.K.) was voluntarily dissolved with effect from April 26, 2022.
  • 2022: Offered 56 labels to choose from a portfolio of 13 distinct brands as of September 30, 2022.
  • 2022: One of the top 10 most followed vineyards in the world, having a large following on social media.
  • 2022: India’s largest wine producer and seller as of March 31, 2022.
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