Mukul Agrawal Portfolio: FMCG Stock To Turn 400% Ex-Dividend In 1 Day; Buy?

A small-cap company in the FMCG industry is Sula Vineyards Ltd. Founded in 1999, Sula Vineyards is a renowned winery. This wine brand is the most awarded in India. Due to tomorrow's ex-dividend dealings, the company's shares are probably going to be in the spotlight tomorrow. The Mukul Agrawal portfolio stock will trade ex-dividend in one day as a result of the company's 400% interim dividend declaration, with a face value of Rs 2. Wednesday, February 21, 2024, has been set as the record date.

Sula Vineyards Dividend

The Board of Directors have declared "Interim Dividend of Rs. 4/- per equity share of face value of Rs. 2/- each, for the financial year 2023-24, to be paid to the Members of the Company within 30 days from the declaration by the Board, as per the provisions of Companies Act, 2013, and the Rules made thereunder. The record date for the purpose of payment of interim dividend is Wednesday, 21st February 2024," said Sula Vineyards in a regulatory filing.

Sula Vineyards Financials

With over 50% share in the domestic wine market, Sula Vineyards Limited (NSE: SULA), the largest and only listed wine manufacturer in India, has released its financial results for Q3 and 9MFY24. In Q3FY24, the company generated revenue from operations of Rs 217.5 Cr, up 4.0% YoY from Rs 209.1 Cr in Q3FY23. Its EBITDA grew by 12.8% YoY to Rs 73.3 Cr from Rs 64.9 Cr in the same quarter of the previous fiscal year. Sula Vineyards reported Q3 net profit of Rs 43.0 Cr, up 9.4% YoY from Q3FY23's Rs 39.3 Cr.

Sula CEO Rajeev Samant said, "We are pleased to report an all-time high quarterly revenue and profit. Our EBITDA and PAT margin also hit a record for Q3 and 9M period. Our premiumization efforts have succeeded in taking our Elite and Premium wine share to an all-time high of 77% in Q3*, up from 74.5% a year ago, contributing to an over 200 bps increase in our EBITDA margin to an alltime quarterly record. Our Elite and Premium wines clocked 7.3% growth this quarter."

"Our wine tourism revenues grew in double digits, for the fourth quarter in a row. On January 27th, Sula achieved a record-breaking single-day revenue and conducting over 2,450 individual tastings, surpassing the previous highs set on December 24th, 2023. For the first time three of our iconic Sula Vineyards brands are now available in 250ml cans! We launched Sula Chenin Blanc, Rosé Zin, and Red Zin cans initially in Maharashtra only. Canned wine is becoming a wildly popular format the world over due to sheer convenience and we believe our Sula cans will make their presence felt in the Indian market, greatly expanding accessibility to new audiences," he added.

"In other good news, the ongoing 2024 harvest looks extremely promising with excellent quality and abundant quantity for the fourth year in a row, setting us up to comfortably meet the increasing demand for our Elite and Premium wines. This is a tribute to the hard work we have been putting in to mitigate the twin impacts of climate change and global heating. Today, we are already one of the world's most sustainable wine producers. We take pride in being among the first 10 wineries globally and the first winery in Asia to earn the prestigious IWCA Gold status, alongside wineries such as Famila Torres and Jackson family Wines," Rajeev Samant stated.

"Currently, we have over 3 MW of installed on-site solar power capacity, enabling us to meet almost 60% of our energy needs through our own renewable sources. We also have plans in place to achieve over 70% in the near future. Given the excellent harvest this year, the ongoing boom in domestic wine tourism, and more consumers choosing our premium Indian wines, these trends bode well for the future," he further commented.

Sula Vineyards Share Price Target

Sula Vineyards looks bearish on the Daily charts with strong resistance at 618. A daily close below support of 554 could lead to a target of 502 in the near term, said AR Ramachandran from Tips2trades.

Mukul Agrawal Stake In Sula Vineyards

During Q3FY24, ace investor Mukul Mahavir Agrawal held 20,00,000 equity shares of the company in his portfolio which is 2.37% of the total paid-up share capital of Sula Vineyards.

Disclaimer

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