Stock Price Movement and Market Context
On 8 Jan 2026, Fratelli Vineyards Ltd’s share price touched Rs.99.05, the lowest level recorded in the past year. This new low comes after a period of sustained decline, with the stock falling by 68.92% over the last 12 months. In contrast, the benchmark Sensex has delivered a positive return of 8.46% during the same period, highlighting the stock’s underperformance relative to the broader market.
Despite the recent low, the stock outperformed its sector by 1.67% on the day it hit this level, and it showed a modest gain following three consecutive days of decline. However, it remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a persistent downward trend.
The broader market context shows the Sensex trading at 84,777.96, down 0.22% from the previous close and approximately 1.63% below its 52-week high of 86,159.02. The Sensex’s 50-day moving average remains above its 200-day moving average, suggesting a generally positive medium-term market trend contrasting with Fratelli Vineyards’ performance.
Financial Performance and Profitability Concerns
Fratelli Vineyards Ltd’s financial results have been under pressure, with the company reporting negative results for four consecutive quarters. The latest half-year figures reveal net sales of Rs.82.39 crores, reflecting a decline of 61.18% compared to the previous period. Correspondingly, the company posted a net loss (PAT) of Rs.9.13 crores, also down by 61.18%.
The company’s return on capital employed (ROCE) for the half-year stands at a negative -1.17%, underscoring challenges in generating returns from its capital base. Additionally, the company’s operating profits have contracted at a compound annual growth rate (CAGR) of -160.50% over the last five years, signalling sustained erosion in core profitability.
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Debt Levels and Risk Metrics
The company’s financial risk profile is elevated, with a high Debt to EBITDA ratio of 4.54 times, indicating limited capacity to service its debt obligations comfortably. This leverage level contributes to the company’s negative return on equity (ROE), reflecting losses and diminished shareholder value.
Fratelli Vineyards’ EBITDA has turned negative, further intensifying concerns about cash flow generation and operational sustainability. Over the past year, profits have declined by an alarming 1383%, a stark contrast to the average historical valuations of the stock.
Comparative Market Performance
While the BSE500 index has generated a return of 7.34% over the last year, Fratelli Vineyards has significantly underperformed, delivering negative returns of nearly 69%. The stock’s 52-week high was Rs.339.95, underscoring the steep decline to its current level.
The company remains majority-owned by promoters, which continues to influence its strategic direction and capital structure decisions.
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Mojo Score and Ratings
Fratelli Vineyards Ltd currently holds a Mojo Score of 3.0 with a Mojo Grade of Strong Sell, upgraded from a previous Sell rating on 15 Jan 2025. The Market Cap Grade stands at 4, reflecting the company’s diminished market valuation and risk profile.
The downgrade to Strong Sell reflects the cumulative impact of weak long-term fundamentals, deteriorating profitability, and elevated financial risk.
Summary of Key Financial Metrics
To summarise, the company’s key financial indicators are as follows:
- New 52-week low price: Rs.99.05
- One-year stock return: -68.92%
- Operating profit CAGR (5 years): -160.50%
- Debt to EBITDA ratio: 4.54 times
- Net sales (latest six months): Rs.82.39 crores, down 61.18%
- Profit after tax (latest six months): Rs.-9.13 crores, down 61.18%
- ROCE (half-year): -1.17%
- Negative EBITDA and ROE
These figures illustrate the challenges faced by Fratelli Vineyards Ltd in maintaining profitability and financial stability in the current market environment.
Market and Sector Positioning
Operating within the beverages sector, Fratelli Vineyards Ltd’s performance contrasts with broader sector trends, where many peers have maintained more stable valuations and financial metrics. The stock’s current trading below all major moving averages signals continued caution among market participants.
Conclusion
The recent fall to a 52-week low at Rs.99.05 encapsulates a year marked by significant declines in revenue, profitability, and market valuation for Fratelli Vineyards Ltd. The company’s financial metrics reveal ongoing pressures, including negative returns, high leverage, and shrinking sales. While the broader market and sector indices have shown resilience, Fratelli Vineyards’ stock remains under considerable strain, reflected in its Strong Sell rating and subdued trading levels.
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