Should you invest in Sula Vineyards now? Case Study

Hey there wine lovers! Did you hear about Sula Vineyards' not-so-stellar IPO debut? Don't let that scare you away though, value investors love a good discount! So, should you pop open a bottle of Sula and invest? Let's dive into the financials and see if this vino company is worth the pour.
Cheers!
00:00 Let's begin
00:38 Story of Sula Vineyards
03:43 Financials of Sula Vineyards
12:30 Ever seen a Sula ad?

[@PrateekSinghLearnApp]

Join LearnApp Prime, a FREE 3-day exclusive programme to help you learn trading from scratch👇 bit.ly/lappprime Not everyone gets a seat on Prime, so please write your answers diligently :)

[@VishawjeetDeshmukh]

Surrogate marketing of Sula: They have made Sula VineYard as a resort in nashik for showing journey of wine making and teaching how to drink wine they are creating awareness and customer acquisition

[@Anic21212]

It's not surrogate marketing. They already have 'vine' in their resort name and they arrange an official wine festival every year at the same place.

[@ironeagle3211]

Sula Vineyards core marketing revolves around Wine tourism, visits to their vineyard and musical concerts which they sponsor. What they can do to add to their current marketing strategy can be by1) targeting Chefs who are primarily cooking cuisines which go with wine.2) Starting food festival in 5 star hotels where they can show case their wine 3) International and domestic cruises can be targeted 4) Surrogate marketing by launching grape juice

[@ritwikbera3223]

2020 corona tha isliye growth slow tha now q to q profit 24%. India is big market for wine industries next decades

[@arnavparashar8403]

Thank you for this video, now I know how to do some basic fundamentals on companies of interest

[@greengraphs]

Great work again Sir Prateek, just one feedback if your team accepts that in any case, the background music is distracting. Kindly check that, may be it is for me only.

[@pranjalphukan6815]

I really like the way you hv analysed Sula. Being a small wine maker from Assam, I would definitely like to know or understand how to grow winery in India and make it as one of premium drinks besides others.. Thanku

[@ResearchandExplore2024]

Port Wine 1000 180 ML Wine at Just ₹69. This is Very Cheap 🤯, But a Great Strategy To Cater As Many As People To Taste a Wine, and Get Addicted To Wine Product/Taste.

[@MayurCreativeStudio]

Naming a Brand After His Mother’s Name is Really Heartful Gesture. And Yeah Dad Aise Hi Hote Hai. 😪 And Creating A Monopoly in Wine Market is Great, But as if there is No Growth in Sales, is it risky to have a Sula Vineyards Stock in the Portfolio? And Yeah Wine is not in the Culture of India, But Popular Art Galleries Serves Wine and Cheese in Their Art Shows. So Just Asking Should We Go After Whiskey Stocks if there is Any? P.S Rum with Warn Water + Honey is Best For Cold Spell.

[@ManeeshJoshi]

Will stick with your previous video on Globus spirits. ❤️

[@nityasomaiya5001]

Bro it was Covid in 20-21, how is everyone forgetting that the period was the reason their growth, and EPS and other stats went down.

[@abhijeetkulkarni8463]

Sula does advertising mainly through social media and their music and wine festival annually

[@tarangsuri8932]

Target or i would say tie up with upscale resturants and bars for there premium products, for targeting general public introduce single glass or pouch of wine popular in lower middle class public of usa....

[@PrateekSinghLearnApp]

That’s an interesting take Tarang 🙌🏼

[@boldbalutv]

I enjoyed your analysis, as always😊

[@sivavenkatrapeti6031]

Enjoyed the analysis

[@ShivamTiwari-dh9sm]

As India is kind of adopting things from western culture (mostly in tier 1 cities) in coming years wine will be one of them! But not for majority of population. And yes drinking is definitely a thing driven by culture !

[@jaswanthyeturi415]

I liked the logo of sula So i drink it 😅 It’s true

[@akashraturi6019]

Hey Prateek, you asked how sula do marketing, and how sula can create wine drinking culture in india . 1. Sula is like a luxury car like BMW, Ferrari these kind of brand don't need marketing they sold only as per their brand value. In term of marketing i think Sula name is sufficient for everyone. 2. I guess sula can't create alcohol culture in India it will happen automatically. Because every Indian wants lavish life, youth are attracting towards premium and expensive wine. and future aspects sula will grow. Last one i want learn app subscription need some discount please #Prateek Sir, really want to learn from you.

[@PrateekSinghLearnApp]

We’ll I think brands are built and don’t happen on their own. But interesting points Ákash. Can’t do anything about subscription discount bhai 🙈

[@gauthampatelgp]

Sula vine yard and music festival using influencer is the main mode of marketing

[@utkarshjha657]

They do marketing by organising Sula fest, giving wines as complimentary in hotels and bars, through Sula harvest and internet marketing. I think they should start making advertisement just like pan masala companies do.

[@sudarshandavid2576]

Hi, I didn't understand the last part of the videos, at 11:09 you said not the single rupee gone to Sula, why is that, did you mean they as a promotors have not invested among themselves.. or did you mean something else.. please reply

[@PrateekSinghLearnApp]

The IPO is an offer for sale which means all the money raised will goto existing investors to exit on their earlier investment in Sula. Money won’t goto the company to grow its business further

[@ManeeshJoshi]

No 🍷🤞 Some people abstain from drinking alcohol due to personal beliefs.In some cultures, alcohol is an important part of social and religious events, but in some countries it is not consumed at all.

[@arnavparashar8403]

The Kingfisher ad part was nostalgic xD

[@amitkumar-vk5yt]

Hey prateek sir , amazing show as always . Sula has its own restaurant and hotels.

[@PrateekSinghLearnApp]

Thank you!

[@rajanmoses]

I love wines infact port wine 1000 is my favorite and a much better one than Sula wines. Had they IPO port wine i would have bought the stock. I didn't buy Sula stock as I don't like their wine

[@Fintertainer]

Marketing of sula- Social media handles who are creating awareness about spirits, beer and things alike can be asked to do marketing of sula wines. Surrogate marketing- creating a juice with the same name.

[@kamalharsha7]

Very good explanation

[@ShivamTiwari-dh9sm]

Sula wines heavily invests in organising Sula Fests, Wine tourism and on-premise advertisement !

[@suraj5842]

Coffee is a must in south India

[@julies5085]

After this video being posted, the Rs 325 value Sula share price rose by more than Rs 100 to Rs 426. Only 8.9k views , it is 4 months now since this video. Since listing, 31% up in a year but with lot of ups and downs. I believe that they will grow, although slowly, they have more than half market share already. It just means you are right that wine is far away from being a mainstream drink in India. There are also far better wines available in foreign markets with century old makers too, they cannot compete there. They need to build market in India , cater to right audience through right channels, bring down pricing maybe to do so. Nowadays they are focusing more on tourism it seems, but this strategy alone cannot give them growth. What do you say?

[@anahitakatrak5995]

Well articulated

[@PrateekSinghLearnApp]

Thank you Anahita :)

[@AbGupta]

Sula share price has shot up more than 20% since this video lol

[@shivaram61]

Sir can you make video on pivot point indicator

[@PrateekSinghLearnApp]

Thanks for the suggestion shiva! Will definitely convey this to the team

[@jaswanthyeturi415]

Nice video sir and excited for tomorrow’s learn app prime 😊

[@PrateekSinghLearnApp]

Hey how did it go?

[@jaswanthyeturi415]

@@PrateekSinghLearnApp no words to describe 👏👌

[@Hemant_Nirban]

Kya samzate ho bhai, 1 no.

[@learnersparadise7492]

After your analysis, SULA went up by 30%... so it means that you were unable to capture all points.

[@PrateekSinghLearnApp]

Price and fundamental analysis are two different things. For example kingfisher was always a bad company but continued to go up until people realised the business won’t work.

[@learnersparadise7492]

@@PrateekSinghLearnApp Bad Management and unethical means are not known beforehand. That's different thing. It happened for ICICI BANK, YES BANK, SATYAM OR ALL RELIANCE ADAG stocks..such analysis is beyond your control as data points are not available but that's not the case with Sula, it's a new company and one of it's kind in India. I had been to Bangalore Sula winyard factory and seeing their operations and studying data points, invested with conviction and now making 30 percent gain. No Breweries company go down, it's safe business... Kingfisher the example you took is still strong in its brewery business, so accept the fact that market is smarter and knows more than you me or any of us.

[@yashrajani8650]

Which website is used to view the data ❓

[@saatvik_shuklaa]

Screener

[@PrateekSinghLearnApp]

Yeah screener can use money control too

[@vijayraj458]

I like red wine 🍷

[@teamftwkushop3848]

Sula fest 🙂 is one of the bestt ways them advertising

[@pritgada8378]

Wine tourism is their way of marketing

[@verynoob1]

I am very surprised to find they are doing well. Even more shocked it was started by someone who had real wind abroad, and a foreigner who "loves" wine. It's not wine. It's fermented grapes, yes, it meets that requirement. But ur essentially drinking oversugared Grape juice. I tried 3 different Sulas, same thing. Try ANY wine from Europe, Australia, Napa, it will be entirely different. This is basically kids sugar water. Ever 2 buck chuck is far superior. I don't understand why its so bad. They have the grapes, and I assume they have a sommelier. So what's missing? Perhaps the grapes are awful? Perhaps the process? Or are they trying to adopt it to a sugar obsessed palette? This will never be able to enter a foreign market, never. Why not just get someone who can make it decent? I'm not saying it was bad, I'm saying it was not wine

[@verynoob1]

Also, ask Anyone's who's had just 2 bottles of any wine from any other country (besides Ports), if they taste this, they will never order it again

[@SuperKillbill66]

Sula makes some good wine !! Probably you have not tasted that !!

[@nitikbadjatya]

Chai chai chai ☕️

[@WanderlustwithRaj]

Wine tour and entertainments in house

[@solomonpossible]

Red wine

[@ayushsrivastava7053]

Not sure if this is how 'Vineyard' is pronounced.

[@PrateekSinghLearnApp]

Yeah yeah you are right I said that by mistake….it’s vinnnnn yard…you know we said nobody will notice after the cut was done but lo and behold you found it ;)

[@ayushsrivastava7053]

@@PrateekSinghLearnApp lol :P Sorry!

[@rahulsaikia9014]

Why don’t you make videos in Hindi bro? If u want to touch people’s heart u have to make it in Hindi. Feels bad to see such low views in spite of having such good content.

[@PrateekSinghLearnApp]

We want to make videos in Hindi but currently we haven't reached a scale to produce videos in Hindi and other vernacular languages. But we do plan to make Hindi videos soon!

[@SameerMohantyMusic]

Cofee

[@ritwikbera3223]

Like Infosys promoter 13%

[@ritwikbera3223]

6oti company wo dekho wine ki growth potential hay.

[@neelakshmishra9614]

Chocolate milkshake 🤣

[@riser9644]

Stay out of the company founder don't care and has 2nd more profit competing company

[@lifestylewithtechnology6323]

amul doodh peeta hai india

[@PrateekSinghLearnApp]

Haha hilarious 🤣

[@DEV-cw7wf]

Teatotler 😅

[@ritwikbera3223]

Promoter 27% bahat jada hay jeff bezos 15%hay amazon ka bill gates 15%to20%

[@ritwikbera3223]

Jab lokoko hat me paisa ayega tab sales barega kuiki wine expensive hay

[@richierishi5547]

Indirectly…U r marketing SULA…i mean to say …people who are making videos about SULA ipo debut….See ur Thumbnail…once…den u ll get clear picture..how u people digital marketing about SULA…on youtube…its enough for dem..to make their Company popular😂…where is my Prize??

[@PrateekSinghLearnApp]

Haha lol good answer Rishi, I hope they don’t invest in any stock just by looking at a thumbnail and actually watch the video before deciding anything. Your prize is this digital cup 🏆

[@mrutyunjaydas9956]

Funny

[@harshsingh2783]

I don't drink

[@PrateekSinghLearnApp]

Very good

[@blaupaunk]

I enjoyed your analysis