Recent Price Movement and Market Context
On the day the stock hit this fresh low, it underperformed its sector by 1.58%, closing with a day change of -1.76%. This decline followed two consecutive days of gains, signalling a reversal in short-term momentum. The stock is currently trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward pressure.
In contrast, the broader market index, Sensex, experienced a negative session, falling by 217.68 points or 0.31% to close at 82,989.70. Despite this, Sensex remains 3.82% below its 52-week high of 86,159.02. The index has been on a three-week losing streak, shedding 3.23% over this period, with its 50-day moving average trading above the 200-day moving average, suggesting mixed technical signals.
Long-Term Performance and Valuation Metrics
Over the past year, Sula Vineyards Ltd has delivered a negative return of 49.11%, significantly underperforming the Sensex, which posted a positive 7.69% return over the same period. The stock’s 52-week high was Rs.388.30, highlighting the extent of the recent decline.
Financially, the company has faced challenges with operating profit shrinking at an annualised rate of 10.18% over the last five years. The latest quarterly results, declared in September 2025, showed a sharp fall in profit before tax (PBT) by 53.68%, with PBT for the quarter at Rs.7.44 crore, down 56.1% compared to the previous four-quarter average. Similarly, profit after tax (PAT) for the quarter stood at Rs.6.02 crore, a decline of 58.1% relative to the prior four-quarter average.
Operating cash flow for the year was reported at Rs.64.03 crore, marking the lowest level in recent periods. These figures have contributed to the stock’s current strong sell rating, with a Mojo Score of 29.0 and a Mojo Grade downgraded from Sell to Strong Sell on 12 Jan 2026.
Turnaround taking shape! This Small Cap from NBFC sector just hit profitability with strong business fundamentals showing up. Catch it before the major breakout happens!
- - Recently turned profitable
- - Strong business fundamentals
- - Pre-breakout opportunity
Comparative Performance and Peer Valuation
In addition to underperforming the Sensex, Sula Vineyards has lagged behind the BSE500 index over the last three years, one year, and three months. Despite this, the company’s return on capital employed (ROCE) stands at 9.4%, which is considered attractive relative to its valuation metrics. The enterprise value to capital employed ratio is 2.1, indicating a valuation discount compared to peers’ historical averages.
Profitability has also declined significantly, with profits falling by 42.7% over the past year, aligning with the stock’s negative price performance. Institutional investors hold a substantial 22.06% stake in the company, reflecting a level of confidence from entities with extensive analytical resources.
Considering Sula Vineyards Ltd? Wait! SwitchER has found potentially better options in Beverages and beyond. Compare this small-cap with top-rated alternatives now!
- - Better options discovered
- - Beverages + beyond scope
- - Top-rated alternatives ready
Summary of Key Financial Indicators
The company’s recent financial disclosures highlight a challenging environment. The operating profit’s negative growth trend over five years, combined with a steep decline in quarterly profits and operating cash flow, has contributed to the stock’s diminished market valuation. The downgrade to a Strong Sell grade reflects these developments.
Despite these headwinds, the valuation metrics suggest the stock is trading at a discount relative to its capital employed and peer group valuations. Institutional holdings remain significant, which may influence the stock’s trading dynamics.
Technical and Market Sentiment Overview
Technically, the stock’s position below all major moving averages signals a bearish trend. The recent reversal after a brief two-day rally underscores the prevailing downward momentum. The broader market’s mixed signals, with the Sensex trading below its 50-day moving average but with the 50DMA above the 200DMA, add complexity to the overall market environment.
Given the stock’s 52-week low of Rs.192.45 and its historical high of Rs.388.30, the current price level represents a significant retracement, reflecting both company-specific and sector-wide pressures.
Conclusion
Sula Vineyards Ltd’s stock reaching a new 52-week low is a reflection of sustained financial pressures and market dynamics. The company’s declining profitability, subdued cash flows, and underperformance relative to benchmarks have contributed to this outcome. While valuation metrics indicate a discount relative to peers, the stock remains under pressure as it trades below key technical levels and continues to face challenges in reversing its downtrend.
Unlock special upgrade rates for a limited period. Start Saving Now →
