India's Sula Vineyards up after Kotak begins coverage with "add"

Sula Vineyards

20/06/2023 10:32

** Shares of Sula Vineyards  SULA.NS  rise as much as 2.8%
to 469.35 rupees
    ** Kotak Institutional Equities initiates coverage with
"add" rating and fair value of 500 rupees
    ** Says it expects co to maintain profitability at current
levels given modest and calibrated inflation in wine grapes and
easing glass bottle prices
    ** Adds that long-term profitability to largely hinge on
state mix
    ** Says it estimates 13.5% CAGR in net revenue and 14.4%
CAGR in PAT, both over FY23-26E
    ** Co's operating metrics are far superior to those of its
domestic peers - Kotak
    ** Says Sula's progress in scaling business outside
Maharashtra and Karnataka and market share dynamics between
domestic and imported wine will influence valuations in the
medium term
    ** Stock up 41.3% from closing price on Dec. 22, 2022, its
market debut

 (Reporting by Varun Vyas in Bengaluru)
 ((varunvyas.hebbalalu@thomsonreuters.com))