Stock Performance and Market Context
On 14 Jan 2026, Sula Vineyards Ltd’s share price touched Rs.192.85, its lowest level in the past year and an all-time low. This represents a notable drop from its 52-week high of Rs.397.05, indicating a depreciation of over 51%. The stock has been on a downward trajectory for nine consecutive trading sessions, resulting in a cumulative loss of 11.53% during this period.
In comparison, the Sensex opened lower at 83,358.54 points, down by 269.15 points (-0.32%), and was trading marginally lower at 83,622.40 points (-0.01%) during the same session. The Sensex remains close to its 52-week high of 86,159.02, just 3.03% away, while the BSE Small Cap index gained 0.26%, highlighting a divergence in performance between Sula Vineyards and broader market segments.
The stock’s underperformance is further emphasised by its relative movement against the beverages sector, where it lagged by 1.55% on the day. Additionally, Sula Vineyards is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.
Financial Metrics and Profitability Trends
Over the past year, Sula Vineyards has delivered a total return of -48.26%, starkly contrasting with the Sensex’s positive return of 9.31%. This negative trend is underpinned by deteriorating profitability and subdued growth metrics. The company’s operating profit has contracted at an annualised rate of -10.18% over the last five years, reflecting persistent pressure on earnings.
The September 2025 quarter results were particularly weak, with profit before tax (PBT) falling by 53.68%. Quarterly PBT stood at Rs.7.44 crores, down 56.1% compared to the average of the previous four quarters. Similarly, the net profit after tax (PAT) for the quarter was Rs.6.02 crores, representing a decline of 58.1% relative to the prior four-quarter average.
Operating cash flow for the year was reported at Rs.64.03 crores, the lowest in recent periods, indicating constrained cash generation capacity. These figures collectively highlight a challenging earnings environment for the company.
Rising fast and still accelerating! This Small Cap from FMCG sector is riding pure momentum right now. Jump in before the rally reaches its peak!
- - Accelerating price action
- - Pure momentum play
- - Pre-peak entry opportunity
Valuation and Institutional Holding
Despite the subdued financial performance, Sula Vineyards maintains a return on capital employed (ROCE) of 9.4%, which is considered attractive relative to its valuation metrics. The enterprise value to capital employed ratio stands at a low 2.1, suggesting that the stock is trading at a discount compared to its peers’ historical averages.
Institutional investors hold a significant stake in the company, with 22.06% of shares owned by entities with greater analytical resources and market insight. This level of institutional holding may reflect a degree of confidence in the company’s underlying fundamentals despite recent price weakness.
Long-Term and Recent Performance Comparison
Over the last three years, Sula Vineyards has underperformed the BSE500 index across multiple time frames, including one year and three months. The stock’s returns of -48.45% over the past year coincide with a 42.7% decline in profits, underscoring the correlation between earnings contraction and share price depreciation.
The company’s market capitalisation grade is rated at 3, while its overall Mojo Score is 29.0, categorised as a Strong Sell. This rating was upgraded from Sell to Strong Sell on 12 Jan 2026, reflecting a reassessment of the company’s risk profile and financial outlook.
Holding Sula Vineyards Ltd from Beverages? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Summary of Key Concerns
The stock’s decline to Rs.192.85 is a culmination of several factors, including sustained negative returns, falling profitability, and underperformance relative to sector and market benchmarks. The consistent drop over nine trading sessions and the breach of all major moving averages indicate persistent downward pressure.
While the valuation metrics suggest the stock is trading at a discount, the financial results reveal a contraction in earnings and cash flow generation. The downgrade to a Strong Sell rating by MarketsMOJO further reflects the cautious stance on the stock’s near-term prospects.
In the context of a broader market where small caps are gaining and the Sensex remains near its highs, Sula Vineyards’ performance stands out as notably weak within the beverages sector.
Market Position and Sectoral Context
Sula Vineyards operates within the beverages industry, a sector that has seen mixed performance in recent months. The stock’s underperformance relative to its sector peers and the broader market indices highlights challenges in maintaining competitive momentum. The company’s market cap grade of 3 indicates a mid-tier valuation status, but this has not translated into positive returns for shareholders over the recent period.
Given the current market dynamics, the stock’s position at a 52-week low is a significant development, reflecting both company-specific and sectoral pressures.
Conclusion
The fall of Sula Vineyards Ltd’s stock to Rs.192.85 marks a notable low point in its trading history, driven by a combination of declining profitability, subdued returns, and relative underperformance against market benchmarks. The company’s financial metrics and recent results underscore the challenges faced in sustaining growth and earnings momentum. While valuation indicators suggest a discount relative to peers, the overall market sentiment and rating adjustments reflect a cautious outlook on the stock’s near-term trajectory.
Unlock special upgrade rates for a limited period. Start Saving Now →
