Recent Price Movement and Market Context
On 8 Jan 2026, Sula Vineyards Ltd’s share price dropped by 1.57%, underperforming the Sensex which declined by 0.75% on the same day. This marks the fifth consecutive day of losses for the stock, which has fallen by 5.42% over this period. The stock’s underperformance extends beyond the short term, with a one-week decline of 5.10% compared to the Sensex’s 1.01% fall, and a one-month drop of 4.84% against the Sensex’s 0.91% decrease.
More notably, the stock has experienced a steep 19.78% decline over the past three months, while the Sensex has gained 3.12%. Over the last year, Sula Vineyards Ltd has generated a negative return of 48.90%, in stark contrast to the Sensex’s positive 7.91% gain. Year-to-date, the stock is down 4.44%, compared to the Sensex’s 1.05% decline. The three-year and five-year returns also highlight the stock’s relative weakness, with losses of 35.56% and flat performance respectively, while the Sensex has delivered gains of 40.78% and 72.86% over the same periods.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring the sustained downward momentum.
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Financial Performance and Profitability Trends
The company’s financial results have reflected considerable pressure. In the quarter ending September 2025, Sula Vineyards Ltd reported a profit before tax (PBT) of ₹7.44 crore, representing a decline of 56.1% compared to the average of the previous four quarters. Net profit after tax (PAT) for the same period fell by 58.1% to ₹6.02 crore. These figures contributed to a very negative quarterly result announcement.
Operating cash flow for the year stood at ₹64.03 crore, marking the lowest level recorded in recent years. Over the last five years, the company’s operating profit has contracted at an annual rate of 10.18%, indicating subdued growth in core earnings.
These financial trends have weighed heavily on the stock’s valuation and investor sentiment, as reflected in the MarketsMOJO Mojo Score of 34.0 and a Mojo Grade of Sell, which was downgraded from Strong Sell on 6 Jan 2026.
Relative Performance and Valuation Metrics
When compared to its peers and broader market indices, Sula Vineyards Ltd’s performance has been below par. The stock has underperformed the BSE500 index over the last three months, one year, and three years. Despite this, the company’s return on capital employed (ROCE) remains at a moderate 9.4%, and it trades at an enterprise value to capital employed ratio of 2.3, suggesting a valuation that is attractive relative to its historical averages and peer group.
However, the stock’s price decline of 48.90% over the past year has been accompanied by a 42.7% fall in profits, highlighting the correlation between earnings deterioration and market valuation.
Institutional investors hold a significant stake of 22.06% in the company, indicating a level of confidence from entities with extensive analytical resources.
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Market Capitalisation and Grade Assessment
Sula Vineyards Ltd’s market capitalisation grade stands at 3, reflecting its mid-tier size within the beverages sector. The downgrade in Mojo Grade from Strong Sell to Sell on 6 Jan 2026 indicates a slight improvement in outlook, though the overall assessment remains cautious given the company’s recent financial and price performance.
The stock’s consistent underperformance relative to the Sensex and sector benchmarks over multiple time frames underscores the challenges faced by the company in regaining investor confidence.
Summary of Key Metrics
• All-time low price: ₹206.8 (hit on 8 Jan 2026)
• Five-day consecutive decline: -5.42%
• One-year return: -48.90% vs Sensex +7.91%
• Three-month return: -19.78% vs Sensex +3.12%
• Operating profit CAGR (5 years): -10.18%
• PBT decline (Sep 2025 quarter): -53.68%
• PAT decline (Sep 2025 quarter): -58.1%
• Operating cash flow (year): ₹64.03 crore (lowest recorded)
• ROCE: 9.4%
• Enterprise value to capital employed: 2.3
• Institutional holdings: 22.06%
The data presents a comprehensive picture of a stock that has experienced sustained downward pressure across multiple financial and market indicators. While valuation metrics suggest some relative attractiveness, the persistent declines in profitability and share price highlight the severity of the current situation for Sula Vineyards Ltd.
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