Stock Performance Overview
On 28 Jan 2026, Sula Vineyards Ltd’s share price fell by 1.20%, underperforming the Sensex which gained 0.41% on the same day. This decline extends a three-day losing streak, during which the stock has depreciated by 4.76%. Over the past month, the stock has plunged 18.58%, significantly lagging behind the Sensex’s modest decline of 3.35%. The downward trend is even more pronounced over longer periods, with a 25.31% fall in three months and a steep 45.42% drop over the last year, contrasting sharply with the Sensex’s 8.29% gain during the same timeframe.
Sula Vineyards is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish momentum. The stock’s underperformance extends to the year-to-date period as well, with a 14.74% decline compared to the Sensex’s 3.55% fall.
Financial Metrics and Profitability Concerns
The company’s financial results have reflected the stock’s downward trajectory. In the quarter ending September 2025, Sula Vineyards reported a profit before tax (PBT) of Rs 7.44 crores, representing a sharp 56.1% decline compared to the previous four-quarter average. Net profit after tax (PAT) also fell by 58.1% to Rs 6.02 crores in the same period. These figures contributed to a very negative earnings report, with the company’s operating cash flow for the year at a low Rs 64.03 crores.
Over the last five years, the company’s operating profit has contracted at an annualised rate of 10.18%, indicating challenges in sustaining growth. This poor long-term growth trajectory has been a key factor in the stock’s deteriorating valuation and market sentiment.
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Institutional Investor Sentiment
Institutional investors have reduced their holdings in Sula Vineyards by 2.63% over the previous quarter, now collectively holding 19.43% of the company’s shares. This decline in institutional participation is notable given these investors’ typically rigorous fundamental analysis and resource advantages. The reduced stake may reflect concerns about the company’s recent financial performance and growth prospects.
Comparative Market Performance
When benchmarked against the BSE500 index, Sula Vineyards has underperformed consistently over multiple time horizons. The stock’s returns over the last three years stand at -50.84%, while the BSE500 has delivered a robust 38.54% gain. Similarly, the one-year and three-month returns of -45.42% and -25.31% respectively lag behind the index’s positive returns of 8.29% and -2.88%. This persistent underperformance highlights the stock’s relative weakness within the broader market context.
Valuation and Efficiency Metrics
Despite the negative price and earnings trends, Sula Vineyards exhibits a return on capital employed (ROCE) of 9.4%, which is considered attractive within its sector. The company’s enterprise value to capital employed ratio stands at 2.1, indicating a valuation discount relative to its peers’ historical averages. However, this valuation advantage has not translated into positive returns for shareholders, as profits have declined by 42.7% over the past year alongside the stock’s 45.42% price fall.
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Mojo Score and Rating Update
MarketsMOJO assigns Sula Vineyards Ltd a Mojo Score of 29.0, categorising it as a Strong Sell. This rating was upgraded from Sell on 12 Jan 2026, reflecting a worsening outlook based on the company’s financial and market performance metrics. The stock’s market capitalisation grade is rated at 3, indicating a relatively modest market cap within its sector.
Sector and Industry Context
Operating within the beverages industry, Sula Vineyards faces a competitive landscape where growth and profitability are critical. The company’s recent results and stock performance contrast with broader sector trends, where many peers have maintained or improved valuations. The stock’s consistent underperformance relative to the beverages sector by 1.75% on the latest trading day further emphasises its current challenges.
Summary of Key Financial Indicators
To summarise, Sula Vineyards Ltd’s key financial indicators reveal a company experiencing significant headwinds:
- Operating profit has declined at an annualised rate of -10.18% over five years.
- Profit before tax fell by 53.68% in the latest reported quarter.
- Net profit after tax decreased by 58.1% compared to the previous four-quarter average.
- Operating cash flow for the year is at a low Rs 64.03 crores.
- Institutional investor stake has reduced by 2.63% in the last quarter.
- Stock price has fallen 45.42% over the past year, underperforming the Sensex by over 53 percentage points.
These figures collectively illustrate the severity of the company’s current position in the market and the challenges it faces in reversing its downward trajectory.
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