In high spirits! Sula Vineyards hits all-time high as CLSA upgrades the stock to buy, sees 56% upside

Sula Vineyards share price NSE, Sula Vineyards share price target: Shares of Sula Vineyards skyrocketed as much as Rs 95.55, or 17.2 per cent, to clock an all-time high of Rs 649.95 apiece on the NSE in the early deals on Monday, January 8, after global brokerage CLSA upgraded the Nashik, Maharashtra-based winemaker to buy from outperform.

The stock of Sula Vineyards—traded with the symbol SULA—traded 14.64 per cent higher in intraday trade at Rs 635.55 on NSE at 10:11 AM. The global brokerage has raised its target price to Rs 863 from Rs 571 earlier, translating to an upside potential of 56 per cent from the previous close.

"The cabinet ministry of the Government of Maharashtra has reinstated the subsidy on wines produced and sold in Maharashtra for five more years," the brokerage said in its note. This, as per the analysts at CLSA, should shift focus to volume opportunities.

The brokerage added that Sula is best placed to benefit from a penetration catch-up for wines relative to other alcoholic beverages and has raised the FY24–26 estimates by up to 4 per cent on the counter.

Sula Vineyards share price history

Sula Vineyards's stock has given a positive return of over over 90 per cent in the last 12 months (from January 9, 2023). In comparison, the headline index Nifty 50 has rallied nearly 20 per cent.

Whats does Sula Vineyards do?

Established in 1999, Sula Vineyards is Nashik’s first winery. Sula is a wine company, spearheading the charge of Indian wine across the world.

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