Mukul Agrawal-Owned FMCG Stock: Rs 3.60 Dividend Out; Ready To Rally As Record Date In May Nears?

With more than 50% of the Indian wine market, Sula Vineyards Limited is the largest wine firm in India. Indians favor the wine brand SULA because of its wide range of around 70 brands at different price points. Following the release of Q4 results and a dividend recommendation, Sula Vineyards' shares closed Friday's trading session on the BSE 2.07% higher at Rs 276.30 per share, with a market capitalization of Rs 2,332.24 Cr. So, how to trade the stock in the coming sessions in which ace investor Mukul Agrawal owned 18,50,000 shares in the company, which is a 2.19% shareholding during the quarter ended in March 2025.

Sula Vineyards Dividend

The Board of Directors "recommended final dividend of Rs. 3.60 per share on the equity shares of face value of Rs.2/- each for the financial year ended 31st March 2025, subject to the approval of the shareholders at the ensuing Annual General Meeting (AGM) of the Company," said Sula Vineyards in a stock exchange filing.

"The 22nd Annual General Meeting of the Company for the financial year ended 31st March 2025 will be held on Thursday, 26111 June 2025. The Dividend on Equity Shares for the financial year ended 3151 March 2025, as recommended by the Board of Directors and as may be declared by the shareholders at the ensuing AGM, will be paid within 30 days from the date of approval in the AGM. The record date for the purpose of determining shareholders eligible to receive dividend shall be Friday, 23'd May 2025," Sula Vineyards informed stock exchanges.

Sula Vineyards Q4 Results

The net profit for the fourth quarter ended March 31, 2025, was Rs 13 crore, down 4.4% year-on-year (YoY) from Rs 13.6 crore in Q4FY24, according to Sula Vineyards Ltd. Compared to Rs 131.7 crore in the same period of the previous fiscal year, revenue from operations rose 1% to Rs 133 crore in the quarter ended in March 2025. In Q4FY25, earnings before interest, tax, depreciation, and amortization (EBITDA) decreased 3.7% YoY to Rs 28.4 crore from Rs 29.5 crore in Q4FY24. In the quarter under review, the EBITDA margin decreased to 22.6% from 24.1% in the same period last year.

"We are pleased to report our highest-ever revenue from operations in both Q4 and FY25. While this marks a significant milestone, our Own Brands sales were relatively subdued in Q4, impacted by few key factors: the continued slowdown in urban consumption, lower WIPS credit, contraction in exports, and short-term retailer destocking in Uttar Pradesh & Uttarakhand prior to the new excise policy announcement," said Rajeev Samant, CEO, Sula Vineyards.

"Despite the ongoing slowdown, it is encouraging to see good traction in some of the markets across India with ten states including Haryana, Rajasthan, Chandigarh, Assam, etc. as well as CSD delivering healthy double-digit growth in Q4. This fits in well with our endeavor of creating a truly pan-India brand. Further, 'The Source' range continues to be a standout, clocking robust double-digit growth in Q4 and FY25, powering forth our Elite portfolio. On a positive note, we have listed 4 new wines in CSD including our blockbuster Dindori Reserve Shiraz which bodes very well for our CSD sales growth in FY26 & beyond," he added.

"Our Wine Tourism segment closed FY25 on a strong note with 25% YoY growth in Q4 led by successful SulaFest'25 and strong performance of the resorts. Further, we are on course to open our latest addition, the Dindori Tasting Room & Bottle Shop at ND Wines later this month. On the profitability front, concerted focus on optimizing overheads helped keep our EBITDA largely intact in Q4 despite subdued sales growth and lower WIPS credit. Looking ahead, we are firmly focused on enhancing profitability and getting back to earnings growth in FY26," Rajeev Samant further stated.

Sula Vineyards Share Price Target

"Sula is trading in a sideways-to-positive range with key support around ₹260 and resistance near ₹280. A breakout above ₹280 can take it to ₹295-300. The stock is forming a base and slowly building momentum. RSI around 58 shows mild bullish bias. Sustaining above ₹260 keeps the trend safe for bulls. A close above ₹280 with volume could confirm a fresh upside breakout," commented Riyank Arora - Technical Analyst - Mehta Equities Limited.

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