Stock Performance and Market Context
On 27 Feb 2026, Sula Vineyards Ltd's share price touched Rs.170, its lowest level in the past year and an all-time low for the company. This represents a notable drop from its 52-week high of Rs.335.45, indicating a depreciation of nearly 49.4% from the peak. Over the last six trading days, the stock has declined by approximately 6.4%, continuing a trend of subdued returns.
The stock's performance today was in line with its sector peers in the beverages industry, which also faced pressure amid a broadly negative market. The Sensex opened flat but later declined by 443.17 points, or 0.57%, closing at 81,777.31. The benchmark index is currently trading below its 50-day moving average, although the 50-day average remains above the 200-day moving average, signalling mixed medium-term market momentum.
Sula Vineyards is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning underscores the stock's weak momentum and the absence of near-term buying interest.
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Financial Performance and Key Metrics
Over the past year, Sula Vineyards Ltd has delivered a total return of -34.73%, significantly underperforming the Sensex, which gained 9.58% over the same period. The stock has also lagged behind the broader BSE500 index across one-year, three-year, and three-month timeframes, reflecting persistent challenges in growth and profitability.
The company’s operating profit has declined at an annualised rate of -20.12% over the last five years, indicating a contraction in core earnings. This trend has been accompanied by negative results in the last two consecutive quarters, signalling pressure on the company’s earnings trajectory.
Return on Capital Employed (ROCE) for the half-year period stands at a low 9.59%, highlighting limited efficiency in generating returns from invested capital. The Debtors Turnover Ratio is also subdued at 2.49 times, suggesting slower collection cycles and potential working capital concerns.
Quarterly Profit After Tax (PAT) has fallen by 15.7% compared to the previous four-quarter average, with the latest figure reported at Rs.10.33 crores. This decline in profitability adds to the cautious outlook surrounding the company’s near-term financial health.
Institutional Investor Activity
Institutional investors have reduced their holdings in Sula Vineyards Ltd by 2.63% over the previous quarter, now collectively holding 19.43% of the company’s shares. This reduction in institutional participation may reflect a reassessment of the company’s fundamentals by investors with greater analytical resources and market insight.
Valuation and Comparative Analysis
Despite the subdued performance, Sula Vineyards Ltd currently trades at a relatively attractive valuation. The company’s Enterprise Value to Capital Employed ratio stands at 1.9, which is lower than the historical average valuations of its peers in the beverages sector. This discount suggests that the market has factored in the company’s recent earnings decline and growth challenges.
However, the profit decline of 55.7% over the past year contrasts sharply with the valuation, indicating that earnings contraction remains a significant headwind. The company’s Mojo Score is 31.0, with a Mojo Grade of Sell, downgraded from Strong Sell on 6 Feb 2026, reflecting a slight improvement in sentiment but still signalling caution.
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Summary of Recent Trends
The stock’s consecutive six-day decline and new 52-week low underscore the challenges faced by Sula Vineyards Ltd in maintaining investor confidence and market momentum. The combination of declining profitability, reduced institutional interest, and technical weakness has contributed to the current price level.
While the valuation metrics suggest some appeal relative to peers, the company’s financial indicators, including ROCE and debtor turnover, remain subdued. The stock’s performance relative to the Sensex and BSE500 indices further highlights its underperformance in both short and long-term horizons.
Market participants will continue to monitor the company’s quarterly results and operational metrics closely as they assess the sustainability of the current trend and any potential shifts in fundamentals.
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