🧭 At a Glance
Sula Vineyards, India’s OG wine brand, commands over 50% of the domestic wine market and 60% in the elite/premium segment. With 330,000+ wine tourists and over 25,000 POS, it’s got reach — but sales have stagnated, and the stock is down 40% in a year. Is the wine running dry?
1️⃣ Sip, Swirl, Scale — But Slowly
Founded in 2003, Sula Vineyards Ltd isn’t just selling wine — it’s selling a lifestyle. Think vineyard stays, wine tastings, luxury resorts, and D2C booze on your doorstep. Yet, for a company with 68 labels and market dominance, its sales CAGR over 5 years is… 3.6% 🥴
🏷️ Brand Portfolio:
- Flagship: Sula (12 labels)
- Premium: RĀSĀ, Dindori, The Source
- Value: Dia, Madera, Satori
- Imports: Le Grand Noir, Familia Torres (17 labels)
Total: 68 labels across 5 price bands
Top Seller: Sula Shiraz Cabernet — India’s most sold wine by value in FY24 🍷
2️⃣ Revenue Bouquet 💐
FY25 Segment-wise Revenue
| Segment | Contribution |
|---|---|
| 🍾 Wine (Own Brands) | 88.2% |
| 🏨 Wine Tourism | 9.7% |
| 🍷 Imports | 2.3% |
Own Brands Split (FY25)
| Tier | Contribution |
|---|---|
| Elite + Premium | 77% |
| Economy + Popular | 23% |
Elite wine. Elite margins. But not elite growth.
3️⃣ Financials: Where’s the Buzz? 🫠
Profit & Loss (₹ Cr)
| FY | Sales | Net Profit | OPM | EPS (₹) |
|---|---|---|---|---|
| FY21 | ₹386 | ₹3 | 17% | ₹1.98 |
| FY22 | ₹424 | ₹52 | 27% | ₹6.63 |
| FY23 | ₹516 | ₹84 | 31% | ₹9.98 |
| FY24 | ₹568 | ₹93 | 31% | ₹11.06 |
| FY25 | ₹579 | ₹70 | 26% | ₹8.32 |
- Revenue growth = 🐌
- Profit declined ~25% in FY25
- EPS has fallen from ₹11.06 to ₹8.32
- And that once-great OPM? Now shrinking
🍷 Wine Tourism FY25 Highlights:
- Avg. Room Revenue: ₹10,600 (up 5%)
- Avg. Occupancy: 87%
- Tastings: 48,600+ (up 6%)
- Visitors: 93,500 (down 10%)
“Come for the wine, stay for the traffic jams in Nashik.”
4️⃣ Expansion on the Menu 🍽️
FY26 Plans:
- 🍾 New 3,500 sq. ft. Dindori Tasting Room by Q1
- 🍷 Domaine Sula (Karnataka) upgrade
- 🏨 New 30-room resort near York = +30% room capacity
They’re betting on wine tourism to offset stagnant wine sales. Will it work? Or will it just inflate capex?
5️⃣ Key Metrics & Market Multiples
| Metric | Value |
|---|---|
| Market Cap | ₹2,593 Cr |
| CMP | ₹307 |
| P/E | 37x |
| ROCE | 13.2% |
| ROE | 12.3% |
| Dividend Yield | 1.17% (payout: 43%) |
Not bad. But not exciting either.
P/E 37x for 3.6% revenue CAGR? That’s a sip too strong.
6️⃣ Balance Sheet: Not Too Tipsy
| FY25 (₹ Cr) | Value |
|---|---|
| Equity + Reserves | ₹586 |
| Borrowings | ₹315 |
| Total Assets | ₹1,076 |
| Operating Cash Flow | ₹58 (down from ₹121 in FY24) |
Debt is manageable. But cash flow got halved. Not ideal when expansion is loading.
7️⃣ Promoter Exit & Shareholding 🍾
- Promoters: Down from 27.33% to 24.66% (OFS via IPO)
- FIIs: Declining – now at 7.97%
- DIIs: Holding steady at 18.26%
- Public: Rising – 49.11% now
Seems like everyone’s selling… except retail.
8️⃣ KMP (Key Managerial Personnel)
| Name | Designation |
|---|---|
| Rajeev Samant | Founder, MD & CEO 🍷 |
| Nick Smith | CFO |
| Rashi Dhawan | Company Secretary (as of FY25 filings) |
Fun fact: Rajeev Samant is considered India’s “Father of Wine”. But even daddy can’t push growth beyond 3% unless Gen Z stops pretending they like gin.
🧮 Fair Value Range
EPS (FY25): ₹8.32
Let’s bake in 10% forward EPS growth → FY26 EPS: ₹9.15
Justified P/E? 25–30x (given brand power, but no hypergrowth)
🎯 FV Range = ₹230 – ₹275
CMP = ₹307
Overvalued unless wine tourism scales and international sales pop champagne.
TL;DR 🍷
- Market leader with 68 labels. But slow growth is corking the buzz.
- FY25 net profit down 25%.
- OCF down 50%.
- P/E 37x for low growth? That’s bubbly pricing.
- New resorts, new tasting rooms — wine tourism might save the day.
- But for now, the only thing aging well is the Shiraz.
Tags: Sula Vineyards Recap, Rajeev Samant, Indian Wine Stocks, Wine Tourism India, EduInvesting, Wine IPO India, Nashik Vineyard Business, FMCG Alcohol Stocks, Premium Wine Stocks, High P/E Consumer Stock
