Stock Performance and Market Context
On 26 Feb 2026, Sula Vineyards Ltd’s share price reached Rs.170.1, setting a fresh 52-week low and an all-time low for the company. This decline comes after five consecutive days of losses, during which the stock has fallen by 6.29%. Despite this, the stock marginally outperformed its sector by 0.33% on the day of the new low. However, it remains well below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish momentum.
In comparison, the Sensex opened positively but slipped into negative territory, closing at 82,116.84, down 0.19%. The benchmark index remains 4.92% below its 52-week high of 86,159.02, with the 50-day moving average trading above the 200-day moving average, indicating a mixed market environment.
Over the last year, Sula Vineyards Ltd has delivered a return of -37.89%, significantly underperforming the Sensex’s 10.07% gain. The stock’s 52-week high was Rs.335.45, highlighting the extent of the decline.
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Financial Performance and Key Metrics
The company’s financial results have reflected challenges over recent periods. Operating profit has declined at an annualised rate of -20.12% over the past five years, indicating subdued long-term growth. The last two consecutive quarters have reported negative results, further underscoring the pressure on profitability.
Return on Capital Employed (ROCE) for the half-year stands at a low 9.59%, while the debtors turnover ratio is also at a low 2.49 times, suggesting slower collection cycles. Quarterly Profit After Tax (PAT) has fallen by 15.7% compared to the previous four-quarter average, with the latest figure at Rs.10.33 crores.
Institutional investor participation has decreased by 2.63% over the previous quarter, with these investors now holding 19.43% of the company’s shares. This reduction in institutional stake may reflect cautious sentiment among investors with greater analytical resources.
Relative Performance and Valuation
In addition to the one-year underperformance, Sula Vineyards Ltd has lagged behind the BSE500 index over the last three years, one year, and three months, indicating a consistent trend of below-par returns. Despite this, the stock’s valuation metrics present a contrasting picture. With a ROCE of 9.4 and an enterprise value to capital employed ratio of 1.9, the stock is trading at a discount relative to its peers’ historical averages.
Profitability has also declined sharply, with profits falling by 55.7% over the past year, aligning with the stock’s negative return of 37.89% during the same period. This combination of lower profits and valuation discount highlights the complex dynamics influencing the stock’s current price level.
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Market Capitalisation and Mojo Ratings
Sula Vineyards Ltd holds a market capitalisation grade of 3, reflecting its mid-tier size within the beverages sector. The company’s Mojo Score currently stands at 31.0, with a Mojo Grade of Sell as of 6 Feb 2026, an upgrade from a previous Strong Sell rating. This adjustment indicates a slight improvement in the company’s outlook, though the overall sentiment remains cautious.
The stock’s day change was recorded at -0.23% on the day it hit the 52-week low, continuing the trend of modest declines amid broader market fluctuations.
Summary of Key Concerns
The stock’s fall to Rs.170.1 is underpinned by several factors: a prolonged decline in operating profit, consecutive negative quarterly results, low returns on capital, and reduced institutional investor interest. These elements have contributed to sustained underperformance relative to both sector peers and the broader market indices.
Additionally, the stock’s position below all major moving averages signals ongoing downward momentum, while the broader market environment remains mixed, with the Sensex itself trading below its 50-day moving average despite a positive opening on the day.
Valuation Considerations
Despite the challenges, the stock’s valuation metrics suggest it is trading at a discount compared to historical peer averages. The enterprise value to capital employed ratio of 1.9 and a ROCE near 9.4 indicate that the market is pricing in subdued expectations for growth and profitability. This valuation context is important for understanding the stock’s current price level within the beverages sector.
Conclusion
Sula Vineyards Ltd’s recent decline to a 52-week low of Rs.170.1 reflects a combination of financial pressures and market dynamics. The stock’s performance over the past year and longer term has been below benchmark indices and sector averages, with key financial indicators signalling subdued growth and profitability. While valuation metrics show a discount relative to peers, the overall market sentiment remains cautious as reflected in the company’s Mojo Grade and institutional investor activity.
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