CLSA recently upgraded the target for Sula Vineyard from ₹571 to ₹863, resulting in an impressive 19% surge in a single day. The stock exhibited robust performance, soaring from ₹554.24 on January 5, 2024, to a closing price of ₹662.05 on January 8, 2024. Over the last three weeks, it has witnessed a substantial 40% increase, rising from ₹468 to ₹662.
In this article, we delve into a comprehensive analysis of Sula Vineyard’s share price targets for the years 2024, 2025, 2026, 2027, 2030, 2040, and 2050. Our examination spans various perspectives, including financial metrics, fundamental analysis, technical analysis, and more.
Table of Contents
About
Sula Vineyard Ltd was started in 1996 by Rajeev Samant. Sula name comes from Rajeev Samant mother’s “Sulabha”. It is involved in manufacturing of wine. It manufacture three different kinds of wine red wine, white wine and rose wine. Sula Vineyard head office is in Andheri East, Mumbai.
| Founded | 1996 |
| Sector | Wine manufacturers |
| Products | red, white, and rosé wine |
| Headquarters | Andheri East, Mumbai |
Financial Information Of Sula Vineyard Ltd
Sula Vineyards has a market capitalization of ₹5,585 Crores. With a Stock P/E ratio of 58.4, the company demonstrates resilience and growth potential. Notably, the Return on Capital Employed (ROCE) stands at a robust 19.9%, underscoring effective capital utilization, while the Return on Equity (ROE) is a commendable 18.3%. Maintaining a healthy financial structure, the debt-to-equity ratio is low at 0.47, with a total debt of ₹258 Crores.
Institutional support is evident with Foreign Institutional Investors (FII) holding 20.6% and Domestic Institutional Investors (DII) holding 17.5%. The Earnings Per Share (EPS) is ₹11.4, reflecting the company’s profitability. Furthermore, the company has experienced noteworthy sales growth, showcasing its market prowess and potential for future success.
| Market Cap | ₹ 5,585 Cr. | Stock P/E | 58.4 |
| ROCE | 19.9 % | ROE | 18.3 % |
| Debt to equity | 0.47 | Debt | ₹ 258 Cr. |
| FII Holding | 20.6 % | DII Holding | 17.5 % |
| EPS | ₹ 11.4 | Sales growth | 15.4 % |
Financial Statement
Sales and Operating profit dipped in 2020 due to Covid. But after that Sula vineyard has given consistent growth in sales and operating profit.
| Particulars | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|
| Net Sales | 493 | 390 | 306 | 387 | 501 |
| Total Expenditure | 336 | 283 | 249 | 333 | 423 |
| Operating Profit | 156 | 107 | 57 | 54 | 75 |
| Other Income | 5 | 3 | 0 | 0 | 3 |
| Interest | 19 | 21 | 32 | 31 | 24 |
| Depreciation | 24 | 22 | 25 | 34 | 19 |
| Profit Before Tax | 118 | 66 | 0 | -12 | 38 |
| Tax | 25% | 26% | -130% | 32% | 49% |
| Profit After Tax | 88 | 49 | -1 | -8 | 20 |
| Adjusted EPS (Rs) | 10.48 | 6.22 | -0.42 | -5.42 | 13.07 |
Technical Analysis of Sula Vineyard Ltd
In the observed chart, Sula Vineyard exhibited a consolidation phase within the price range of ₹458 to ₹525 on a daily timeframe, spanning from August 2023 to December 2023. This consolidation formed a descending triangle pattern, indicative of potential future price movements.
A significant development occurred on December 27, 2023, when the stock broke out of this descending triangle pattern. This breakout was accompanied by a notable price surge, catapulting from ₹470 to ₹662, marking an impressive gain of almost 40%.
However, it is essential to be cautious. Because before it give futher movement it should make higher low.
Table of Share Price Target For Sula Vineyard Ltd
| Year | Min Target | Max Target |
|---|---|---|
| 2024 | ₹ 875 | ₹ 902 |
| 2025 | ₹1,157 | ₹ 1208 |
| 2026 | ₹1,531 | ₹ 1630 |
| 2027 | ₹2,025 | ₹ 2070 |
| 2030 | ₹3,542 | ₹ 3,623 |
| 2040 | ₹10,338 | ₹ 11,232 |
| 2050 | ₹35,124 | ₹ 36,872 |
Sula Vineyard share price target for 2024:
- Minimum Target: ₹875
- Maximum Target: ₹902
In the upcoming year, the company is anticipated to maintain a price range between ₹875 and ₹902.
Sula Vineyard share price target for 2025:
- Minimum Target: ₹1,157
- Maximum Target: ₹1208
Moving into 2025, the projected price range widens, reaching between ₹1,157 and ₹1,208.
Sula Vineyard share price target for 2026:
- Minimum Target: ₹1,531
- Maximum Target: ₹1630
Further into the future, specifically in 2026, the anticipated price range expands to ₹1,531 to ₹1,630.
Sula Vineyard share price target for 2027:
- Minimum Target: ₹2,025
- Maximum Target: ₹2070
By 2027, the company’s share price is expected to aim for a range of ₹2,025 to ₹2,070.
Sula Vineyard share price target for 2030:
- Minimum Target: ₹3,542
- Maximum Target: ₹3,623
Looking ahead to 2030, the minimum and maximum targets extend to ₹3,542 and ₹3,623, respectively.
Sula Vineyard share price target for 2040:
- Minimum Target: ₹10,338
- Maximum Target: ₹11,232
In the long term, by 2040, the company is anticipated to potentially reach a price range between ₹10,338 and ₹11,232.
Sula Vineyard share price target for 2050:
- Minimum Target: ₹35,124
- Maximum Target: ₹36,872
Projected into 2050, the minimum and maximum targets suggest a potential price range of ₹35,124 to ₹36,872.
Positive and Negative Points of Sula Vineyard Ltd
Positive
- The Return on Capital Employed (ROCE) is robust at 19.9%, indicating effective utilization of capital for generating profits.
- The Return on Equity (ROE) is commendable at 18.3%, reflecting the company’s ability to generate returns for shareholders.
- The debt-to-equity ratio is low at 0.47, underscoring the company’s healthy financial structure.
- With a manageable debt of ₹258 Crores, the company demonstrates prudent financial management.
- Foreign Institutional Investors (FII) show significant confidence with a holding of 20.6%, while Domestic Institutional Investors (DII) contribute with a holding of 17.5%.
- The Earnings Per Share (EPS) is strong at ₹11.4, indicating the company’s profitability.
Negative
- Promoter holding is low at 26.3%, potentially impacting the level of control and influence exerted by promoters.
Buy Or Not
The stock has exhibited a remarkable surge, exceeding 40% in the past three weeks as of January 09, 2024, and achieving an impressive gain of over 116% from its low of ₹306 to ₹662 on the same date. However, it is advisable to be cautious before considering a purchase. Given the current high valuation, it might be prudent to await a consolidation phase and the establishment of a higher low. This strategic approach can help mitigate potential risks associated with the stock’s current elevated levels, allowing for a more informed investment decision.
Disclaimer
Investing in stock market is risky and subject to the market condition. This article provides an examination of the company for educational purposes only. We are not SEBI( Stock exchange board of India) registered advisors, and this is not an investment advice. We do not provide tips or calls.. Before making any investment decisions, please conduct your own research or consult a qualified financial advisor.
