Stock To Buy: Beverages Stock Rallies 15.78% Today, CLSA Upgrades TP To Rs 863

Leading brokerage firm CLSA has increased the target price of Sula Vineyards Ltd shares to Rs 863 apiece from Rs 571 apiece. Current market price of Sula Vineyards share on BSE is Rs 642.10 apiece with intraday gain of 15.78%. If you buy Sula Vineyards stock now at the current market price of Rs 642.10 apiece, you can fetch likely return of 34.4%. Sula Vineyards operates in Breweries & Distilleries. Small cap Sula Vineyards shares offered return of 37.53% in last 1-month and soared 98.46% in last 1-year. Check details below:

Sula Vineyards Stock Performance & Return: The 52-week high price of Sula Vineyards shares on BSE is Rs 648.75 per share and 52-week low price is Rs 315.55 per share, respectively. The company has a market capitalisation of Rs 5,418.46 crore. Sula Vineyards shares offered shareholders return of 29% in last 1-week only and soared 37% in last 3-months. In last 6-months, Sula Vineyards stock gained 44%.

Sula Vineyards Valuation: According to the analyst, ""Maharashtra government has reinstated subsidy on wines produced and sold in the state for more than 5 years. This should shift focus to volume opportunity, with Sula benefiting the most as it is a clear market leader with more than 50% market share in wines." The analyst believes that Sula is expected to gain from wine-catch up penetration.

According to the Maharashtra government's wine industrial promotional scheme, wineries that shelled out 20% value added tax (VAT) during the last 3 financial years (2020-21 to 2022-23) would get tax refunded for the tenure. Beginning this financial year, wineries have to pay 20% of the total wine sales in Maharashtra to the state government as VAT.

Sula Vineyards Financials: The leading company earlier last year on November 9, 2023 declared its net profit for the quarter ended September 30, 2023 surged 18.4% to Rs 23.1 crore. It announced its net profit for the corresponding quarter of last year at Rs 19.5 crore, as per its BSE filing. Meanwhile, revenue from operations declared at Rs 142.8 crore, up 11.6% from Rs 128 crore announced in the same quarter of last year. The company's EBITDA announced at Rs 45.1 crore, up 18.1% and EBITDA margin came at 31.6%, enhancing by 173 basis points.

Disclaimer:

The stock has been picked from the brokerage report of CLSA. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.