Recent Price Movement and Market Context
On 24 Feb 2026, Sula Vineyards’ share price touched Rs.172.1, its lowest level in the past year and an all-time low. This decline comes after three consecutive days of losses, during which the stock has fallen by 4.59%. The day’s performance was in line with the broader beverages sector, which has also faced pressure amid a generally cautious market environment.
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 a persistent bearish trend. This technical positioning underscores the challenges the company faces in regaining upward momentum.
Meanwhile, the broader market has experienced its own fluctuations. The Sensex opened 242.12 points lower and closed down by 460.14 points at 82,592.40, a decline of 0.84%. Despite this, the Sensex remains relatively close to its 52-week high of 86,159.02, just 4.32% away. The index’s 50-day moving average remains above its 200-day moving average, indicating a longer-term positive trend contrasting with Sula Vineyards’ performance.
Financial Performance and Profitability Metrics
Over the past year, Sula Vineyards has delivered a total return of -37.73%, significantly underperforming the Sensex, which posted a 10.86% gain over the same period. The stock’s 52-week high was Rs.335.45, highlighting the extent of the decline.
One of the key concerns is the company’s profitability. Operating profit has contracted at an annualised rate of -20.12% over the last five years, reflecting subdued growth in core earnings. The company has reported negative results for two consecutive quarters, further weighing on investor sentiment.
Return on Capital Employed (ROCE) for the half-year period stands at a low 9.59%, indicating limited efficiency in generating returns from capital investments. Additionally, the debtors turnover ratio is at 2.49 times, the lowest recorded, suggesting slower collection cycles and potential liquidity pressures.
Quarterly profit after tax (PAT) has also declined, with the latest quarter reporting Rs.10.33 crores, down 15.7% compared to the average of the previous four quarters. This contraction in profitability adds to the challenges faced by the company in stabilising its financial position.
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Institutional Holding and Market Sentiment
Institutional investors have reduced their stake in Sula Vineyards by 2.63% over the previous quarter, now collectively holding 19.43% of the company’s shares. This decline in institutional participation may reflect a reassessment of the company’s fundamentals by investors with greater analytical resources.
The stock’s Mojo Score currently stands at 31.0, with a Mojo Grade of Sell, downgraded from a previous Strong Sell on 6 Feb 2026. The market capitalisation grade is rated at 3, indicating a relatively modest market cap compared to peers.
Comparative Performance and 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. This consistent underperformance highlights the stock’s challenges in delivering returns relative to the broader market and its sector.
Despite these headwinds, the company’s valuation metrics present a contrasting picture. With a ROCE of 9.4 and an enterprise value to capital employed ratio of 2, the stock is trading at a discount relative to its peers’ historical valuations. This valuation gap reflects market caution but also indicates that the stock is priced attractively compared to sector averages.
Profitability has declined sharply, with profits falling by 55.7% over the past year, further emphasising the pressures on earnings growth and margin sustainability.
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Summary of Key Metrics
Sula Vineyards Ltd’s stock performance and financial indicators paint a picture of a company facing multiple challenges. The stock’s fall to Rs.172.1 represents a 52-week and all-time low, with a year-to-date decline compounded by weak earnings and reduced institutional interest.
Operating profit contraction at an annualised rate of -20.12%, coupled with two consecutive quarters of negative results, has weighed on the stock’s appeal. The ROCE of 9.59% and debtor turnover ratio of 2.49 times further highlight operational pressures. Meanwhile, the stock’s valuation remains discounted relative to peers, reflecting market caution.
While the broader market indices maintain a more positive trajectory, Sula Vineyards’ performance remains subdued, with the stock trading below all major moving averages and underperforming key benchmarks over multiple time frames.
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