🍷 Analysing Sula Vineyards with Stock Alpha
Sula is a vineyard, wine manufacturer & hospitality chain in one company. I use Stock Alpha to help make sense of its business model
Happy Sunday everyone,
If you’re reading this, there’s a high chance you research stocks & find yourself frustrated with ton of manual work involved with extracting financials & operational data from stock filings 📝
A typical equity analyst spends between 3-4 weeks analysing data of one stock, of which 85% of their time is spent in just collating & organising data 🤯
Last week I was intrigued after a conversation with a friend who runs a digital marketing agency on how obsessive his client Sula Vineyards is about all things design
While I have been a happy consumer of many of its products & even stayed at their resort in Nashik, I never really knew how their business works.
As I dug deeper, I uncovered a fascinating founding story of a Mr.Rajeev Samant- a Stanford alumnus who worked at Oracle for a couple of years- quit in 1997 & went back to his roots in the town of Nashik to open a small vineyard 🍇
Today that small vineyard has transformed into a sub INR 4,000 Crore market cap listed company 📊
While Sula has been around for more than 25 years, they IPO’ed only back in 2022 & have had a bumpy ride on the markets since then
To learn more about a stock like this, you would’ve gone to a tool like Screener or studied its stock filings- but with Stock Alpha you can ask questions & get actual insights, not just raw data points 💡
Let’s try & understand the business model of Sula 👇🏻
Question: ‘Explain the business model of Sula Vineyards & give the breakup of how different business verticals contribute to revenue’
Answer from Stock Alpha:
In one single answer, we now know a bunch of things about the company:
85% of Sula’s revenue comes from their premium wine bottles which includes their own & third party brands 🍾
15% of Sula’s revenue comes from their hospitality business which operates two resorts & wine tasting sessions 🏨
11-15% is the revenue growth rate for each vertical with strategic plans such as expansion into Tier 2 cities & new products like ‘Sula in a Can’ 🥫
However, as an investor you have to wear your pessimist & optimist hat at the same time & should be aware of the key risks facing any business 🛑
Let’s try & get Stock Alpha to summarise it for us 👇🏻
Question: What are some of the key risks or challenges highlighted by the company which could hamper its growth in the next 3 years?
Answer from Stock Alpha:
Pretty useful right?
You can see how all the major types of risks facing Sula such as Regulatory, Economic, Environmental & Technological are covered in this- along with the company’s mitigation plan ✋🏻
Now that you know what the company does & its challenges, you might want to go deeper in the weeds & study its core financials & metrics
Instead of banging your head against the wall, with Stock Alpha- you let the AI do the work for you 🤖
Question: ‘Give me a structured table of operating metrics for Sula in Q1 FY 2025’
Answer from Stock Alpha:
You can even ask Stock Alpha to customise this table & add a comprehensive view of all previous quarters for the last 3 years
This would’ve taken a ton of manual copy pasting from stock filings into an excel spreadsheet which is simply an answer you can get on your whim ⚡️
You might say- well that’s pretty cool, what else can Stock Alpha help me with?
While this gives us a clear picture of where Sula is today- the #1 rule of investing is that a company is worth the present value of its future cash flows 💰
So what has Sula’s management said about its FY 25 & 26 earnings projections? 📈
Question: What is the revenue and earnings guidance given by management for FY 2025 and FY 2026?
Answer from Stock Alpha:
We see how it clearly portrayed the management guidance & strategic focus areas for the next couple of years
Stock Alpha is essentially your own equity research AI assistant that can help you with not just extracting information but reason & think through how to evaluate a company 🧠
Try it out for yourself now by signing up 👇🏻