Sula Vineyards share price dips after flat listing. Buy, sell or hold?
2 min read . Updated: 22 Dec 2022, 11:52 AM IST
PremiumSula Vineyards share price: Allottees can hold the scrip maintaining stop loss at ₹319 apiece levels, say experts
Sula Vineyards share price opened flat on BSE and NSE as the brewery stock opened at ₹358 apiece on BSE and ₹361 per equity share on NSE. However, the stock soon witnessed sell off pressure and went on to make intraday low of ₹339 apiece on BSE, dipping around 5 per cent lower from its upper price band of ₹357 per share.
According to stock market experts, the stock has opened flat and slipped into discount on two major reasons — weak Dalal Street sentiments and 100 per cent OFS. They said that stock may rebound after making some more downside in next few sessions. They advised allottees to maintain stop loss at ₹319 apiece and wait for trend reversal at secondary markets.
Speaking on Sula Vineyards share price outlook, Pravesh Gour, Senior Technical Analyst at Swastika Investmart said, "Sula Vineyards Ltd enjoys the benefit of high entry barriers and has the largest wine distribution network and sales presence. Its financial performance is also improving. This issue of Sula Vineyards had a P/E valuation of 54.67, which seems fully priced; the issue, however, was a complete offer for sale, and a low promoter holding is also a concern." He advised allottees to hold the stock for immediate upside target of ₹380 apiece.
Advising allottees to hold Sula Vineyards shares, Ravi Singhal, CEO at GCL Securities said, "Sula Vineyard shares is a good portfolio stock and allottees are advised to hold and accumulate further on big dips maintaining stop loss at ₹319 apiece. However, he advised fresh investors to wait till the stock stabilises in next few sessions and stock market sentiments changes from cautious to positive."
Ravi Singhal of GCL Securities said that Sula Vineyards shares may showcase big downside movement once it breaches its current ₹319 apiece support. He said that due to outbreak of news about rising Covid cases in China, the stock is expected to remain under pressure as it caters to hospitality sector as well. So, further negative new on Covid may lead to more downside movement in the scrip. However, he also maintained that challenge in the stock price can be a big opportunity for bottom finishers and advised such positional investors to wait for further clarity in the markets.
Manoj Dalmia Founder and Director at Proficient Equities said, "Sula Vineyards Ltd. (SVL) is India’s largest wine producer and seller. Popular brands including “RASA," “Dindori," “The source," “Satori," “Madera," and “Dia" are also available, with the company’s main brand “Sula" serving as the “category creator" of wine in India. SVL has posted an average RoNW of 5.24 per cent and an average EPS of ₹3.06 during the past three fiscal years. The issue is priced at a P/BV of 6.11 based on its NAV of ₹58.40. Lower promoter holdings are cause for alarm. Investors with cash surpluses might think about investing for a long-term reward."
The initial public offering (IPO) of Sula Vineyards was open from Monday, December 12 till Wednesday, December 14, 2022, which got subscribed 2.33 times by the last day of offer. The company had fixed a price band of ₹340 to ₹357 a share.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
