Why Sula shares are soaring

<p>Earlier this week, India’s biggest winemaker, Sula, saw its share price reach historic high. The winemaker controls more than half of the market share of India's domestic wine industry. </p><p><br /></p><p>When it went for an IPO at the end of  2022, it was successfully subscribed by almost two and a half times.</p><p><br /></p><p>So you might think the jump in the share price makes sense. Afterall, Sula dominates the wine market in India. But you see, India is not a wine drinking country in general. The share of wine in the country's total alcohol consumption is minuscule.</p><p><br />Turns out, the global brokerage CLSA saying Sula could rise 50% in the next year sent its shares soaring. But this was not because Sula Indians suddenly have become wine drinkers or because Sula has entered the new market.</p><p>Tune in.</p><p><em>Daybreak is produced from the newsroom of </em><a href="https://the-ken.com/"><em>The Ken</em></a><em>, India’s first subscriber-only business news platform. </em><a href="https://the-ken.com/pricing/"><em>Subscribe</em></a><em> for more exclusive, deeply-reported, and analytical business stories.   </em></p>