Sula vineyards - pioneers in indian wines

Is a median remuneration of Sanjeev considered normal or high


Why is the Sanjeev Receiving such a high median remuneration of 8136.6 time to median remuneration of all employees

8Cr+ you mean above ? if yes it is very high

1 Like

IMO It doesn’t look like 8Cr. It’s a ratio which means it could be 8100 times median salary.

1 Like

It literally states “Ratio of …” in the vertical column, it means the Executive Director is getting paid the salary of 8136 workers

Rajeev Samant has been continuously diluting his stake in the company, though in small instalments, but it really makes me a little nervous about the skin in the game. Is he indicating that the price has already reached the valuation which will not improve anytime soon and hence he is smartly diluting his stake? The Q4 results were a little soft as well and the company being the hyped “new drink category creator”, “pioneer of wine” “premiumisation of Indian drinking community” etc, how do you see the below 25% stake of the show runner?

4 Likes

Anubhav,

The promoter’s dilution is Institution’s accumulation which perhaps testifies the faith in the company and the category. I’m worried of the increase in number of shareholders (2,10,000). If some point in time stock starts appreciating in non linear manner, it may increase to 400,000 or may be more. In such case the future return may suppress since Public sharholding is still more than Promoter and the Institutions.

Disc- Not invested but closely watching.

1 Like

I am ultimately saying a similar thing as Institutions may not absorb the promoter selling beyond a point and retail are obviously following the herd mentality if the company is hyped in the media. Verlinvest has already sold out. DIIs are putting in money fueled by burgeoning monthly SIPs which makes them put in money where they can and hence I am not reading much into DIIs increased holding. If and when, the monthly SIPs decline, it will be an interesting scenario for me to see how DIIs cut stake in the narrative driven stocks.

3 Likes

Verlinvest was a Private Equity which needs exit and IPO is exactly done for that. Moreover Sula is selling an aspiration, dream and experience and this will always command a premium.

Apart from Verlinvest, as in the image others have only increased while the share price was falling.

It depends on how you look at it, a alcoholic beveraage or a hospitality company. Moreover their business is all about strong value chain and distribution.

IMO, it may not give returns in the near term and consolidate longer but it has margin of safety much like Sona BLW.

Good luck and Happy Investing

3 Likes