Fratelli Vineyards Ltd Stock Falls to 52-Week Low of Rs.96.7

Stock Price Movement and Market Context

On 12 Jan 2026, Fratelli Vineyards Ltd’s stock touched an intraday low of Rs.96.7, representing a 3.2% decline for the day. Despite this, the stock outperformed its sector by 0.92% during the session. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum.

In contrast, the Sensex opened lower by 140.93 points but recovered to close 0.08% higher at 83,644.31, just 3.01% shy of its 52-week high of 86,159.02. Mega-cap stocks led the market rally, while Fratelli Vineyards, a smaller cap within the beverages sector, continued to face headwinds.

Long-Term Performance and Valuation Trends

Over the past year, Fratelli Vineyards Ltd has underperformed significantly, delivering a negative return of -65.57%, compared to the Sensex’s positive 8.13% gain. The stock’s 52-week high was Rs.305, underscoring the steep decline to its current level. This performance gap reflects ongoing difficulties in the company’s financial and operational metrics.

The company’s Mojo Score stands at 3.0 with a Mojo Grade of Strong Sell, upgraded from Sell on 15 Jan 2025. Its Market Cap Grade is 4, indicating a relatively modest market capitalisation compared to larger peers. The stock’s valuation appears risky relative to its historical averages, reflecting investor caution.

Financial Performance and Profitability Metrics

Fratelli Vineyards Ltd has reported negative results for four consecutive quarters. The latest six-month figures reveal net sales of Rs.82.39 crores, reflecting a decline of 61.18% year-on-year. Correspondingly, the company posted a net loss (PAT) of Rs.9.13 crores over the same period, also down by 61.18%.

The company’s Return on Capital Employed (ROCE) for the half-year stands at -1.17%, indicating challenges in generating returns from its capital base. Additionally, the company’s operating profits have contracted at a compounded annual growth rate (CAGR) of -160.50% over the last five years, highlighting sustained pressure on core earnings.

Debt and Risk Profile

Fratelli Vineyards Ltd carries a high debt burden, with a Debt to EBITDA ratio of 4.54 times. This level suggests limited capacity to service debt comfortably, especially given the negative EBITDA reported. The company’s negative Return on Equity (ROE) further reflects the impact of losses on shareholder value.

Over the past year, profits have fallen by an alarming 1383%, underscoring the severity of the financial strain. This deterioration has contributed to the stock’s classification as a Strong Sell by MarketsMOJO, reflecting weak long-term fundamental strength.

Comparative Market Performance

While the broader BSE500 index has generated a return of 7.21% over the last year, Fratelli Vineyards Ltd has significantly underperformed, delivering negative returns of -65.57%. This divergence highlights the company’s relative weakness within the market and its sector.

The stock’s current trading levels and financial metrics suggest a cautious stance among market participants, with the majority shareholding held by promoters.

Summary of Key Metrics

To summarise, Fratelli Vineyards Ltd’s stock has reached a new 52-week low of Rs.96.7, reflecting a year-long decline of 65.57%. The company’s financial indicators reveal sustained losses, declining sales, and a high debt load, with operating profits shrinking at a steep CAGR of -160.50% over five years. Negative returns on equity and capital employed further illustrate the challenges faced.

Despite the broader market’s modest gains and the Sensex nearing its 52-week high, Fratelli Vineyards Ltd remains under pressure, trading below all major moving averages and carrying a Strong Sell rating from MarketsMOJO as of 15 Jan 2025.

Shareholding and Market Position

The company’s promoter group remains the majority shareholder, maintaining control amid the stock’s decline. The beverages sector, in which Fratelli Vineyards operates, has seen mixed performance, with this stock’s trajectory diverging notably from sector averages.

Conclusion

The new 52-week low price of Rs.96.7 for Fratelli Vineyards Ltd encapsulates a period of significant financial and market challenges. The company’s deteriorating profitability, high leverage, and underperformance relative to the broader market have contributed to this outcome. These factors are reflected in the stock’s current valuation and rating, underscoring the ongoing difficulties faced by the company within the beverages sector.

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