Sula Vineyards Ltd Stock Falls to 52-Week Low of Rs.192.5

Stock Performance and Market Context

The stock’s decline to Rs.192.5 marks a sharp fall from its 52-week high of Rs.388.3, representing a drop of nearly 50%. This movement comes as the broader Sensex index experienced a negative session, closing down by 480.02 points or 0.67% at 83,014.47, after a flat opening. Despite the Sensex being only 3.79% below its 52-week high of 86,159.02, Sula Vineyards has underperformed considerably, with a one-year return of -49.19% compared to the Sensex’s positive 8.40% over the same period.

The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This contrasts with the Sensex, which, while trading below its 50-day moving average, still maintains a 50DMA above its 200DMA, indicating a more stable medium-term trend.

Financial Performance and Ratings

Sula Vineyards’ financial metrics have shown notable deterioration. The company reported a 53.68% decline in profit before tax (PBT) in its September 2025 quarter, with quarterly PBT at Rs.7.44 crore falling 56.1% compared to the previous four-quarter average. Similarly, profit after tax (PAT) for the quarter dropped 58.1% to Rs.6.02 crore. Operating cash flow for the year reached a low of Rs.64.03 crore, underscoring challenges in cash generation.

Over the last five years, the company’s operating profit has contracted at an annual rate of -10.18%, reflecting subdued long-term growth. This performance has contributed to a downgrade in its Mojo Grade from Sell to Strong Sell as of 12 January 2026, with a current Mojo Score of 29.0. The market capitalisation grade stands at 3, indicating a relatively modest market cap within its sector.

Comparative Valuation and Institutional Holdings

Despite the recent declines, Sula Vineyards maintains a return on capital employed (ROCE) of 9.4%, which is considered attractive relative to its valuation metrics. The company’s enterprise value to capital employed ratio stands at 2.2, suggesting that the stock is trading at a discount compared to its peers’ historical averages.

Institutional investors hold a significant stake of 22.06% in the company, indicating a level of confidence from entities with extensive analytical resources. This ownership concentration may influence the stock’s trading dynamics and reflects a degree of fundamental interest despite recent performance setbacks.

Sector and Broader Market Trends

The beverages sector, in which Sula Vineyards operates, has experienced mixed performance in recent months. While the sector’s overall movement today was in line with the stock’s decline, the broader market has shown signs of volatility, with the Sensex falling for three consecutive weeks and losing 3.2% over that period. This environment has added pressure on mid-cap stocks, including Sula Vineyards, which has underperformed the BSE500 index over the last three years, one year, and three months.

Summary of Key Financial Indicators

To summarise, the company’s key financial indicators reveal a challenging period:

• One-year stock return: -49.19%


• Operating profit annual growth rate (5 years): -10.18%


• Quarterly PBT decline: -53.68%


• Quarterly PAT decline: -58.1%


• Operating cash flow (yearly): Rs.64.03 crore (lowest)


• Mojo Score: 29.0 (Strong Sell)


• Market Cap Grade: 3

Stock Price Movement and Technical Indicators

The stock’s current price of Rs.192.5 is not only the lowest in the past 52 weeks but also the lowest ever recorded for Sula Vineyards Ltd. This new low reflects a sustained downtrend, with the stock consistently trading below all major moving averages, signalling persistent selling pressure. The day’s change of -0.84% aligns with the sector’s overall performance, indicating that the decline is part of a broader sectoral movement rather than an isolated event.

Conclusion

Sula Vineyards Ltd’s fall to a 52-week low of Rs.192.5 encapsulates a period of subdued financial performance and market challenges. The company’s declining profitability, reduced cash flows, and underwhelming returns have contributed to its current valuation and rating status. While the stock trades at a discount relative to peers and maintains a reasonable ROCE, the recent financial results and market trends have weighed heavily on its price trajectory.

Investors and market participants will continue to monitor the company’s financial disclosures and sector developments closely as the stock navigates this low price territory.

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