Extended Downward Momentum
The stock has experienced a consistent downward trajectory over multiple time frames. In the last nine trading sessions, Sula Vineyards has lost 11.27% in value. Its one-day decline of 1.20% contrasts with the Sensex’s marginal fall of 0.13%, while the one-week and one-month performances show losses of 8.21% and 10.27% respectively, compared to Sensex declines of 1.69% and 2.05%. Over three months, the stock has plunged 22.57%, whereas the Sensex gained 1.82% in the same period.
Longer-term figures are more stark: the stock has delivered a negative return of 48.33% over the past year, while the Sensex rose by 9.18%. Year-to-date, Sula Vineyards has declined 10.89%, underperforming the Sensex’s 1.99% fall. Over three and five years, the stock has lost 40.54% and remained flat respectively, in contrast to the Sensex’s gains of 38.60% and 68.45%. The ten-year performance remains at zero growth, while the Sensex has surged 237.15%.
Technical Indicators Confirm Weakness
Technical analysis reveals that Sula Vineyards is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning indicates persistent selling pressure and a lack of upward momentum. The stock’s underperformance relative to its sector by 1.42% on the day further emphasises its relative weakness within the beverages industry.
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Financial Performance and Profitability Trends
Sula Vineyards’ financial metrics illustrate a challenging environment. The company’s operating profit has contracted at an annualised rate of -10.18% over the past five years, signalling subdued growth. The latest quarterly results, released in September 2025, showed a sharp decline in profitability with profit before tax (PBT) falling by 53.68% year-on-year.
Quarterly PBT stood at ₹7.44 crores, down 56.1% compared to the average of the previous four quarters. Net profit after tax (PAT) for the quarter was ₹6.02 crores, a 58.1% decrease relative to the prior four-quarter average. Operating cash flow for the year was reported at ₹64.03 crores, marking the lowest level recorded in recent periods.
Valuation and Return Metrics
Despite the subdued earnings and price performance, Sula Vineyards maintains a relatively attractive valuation. The return on capital employed (ROCE) is 9.4%, and the enterprise value to capital employed ratio stands at a modest 2.1. This valuation is below the historical averages of its peer group, indicating a discount in the market price relative to capital utilisation.
However, the stock’s returns have been disappointing, with a 48.33% loss over the past year coinciding with a 42.7% decline in profits. This combination reflects both market and fundamental pressures weighing on the company’s equity value.
Shareholding and Market Sentiment
Institutional investors hold a significant stake in Sula Vineyards, accounting for 22.06% of the share capital. These investors typically possess greater analytical resources and a longer-term perspective on company fundamentals. Their continued presence suggests a degree of confidence in the underlying business despite recent price declines.
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Mojo Score and Market Ratings
MarketsMOJO assigns Sula Vineyards a Mojo Score of 29.0, categorising it with a Strong Sell rating as of 12 Jan 2026, an upgrade from the previous Sell rating. The market capitalisation grade is rated at 3, reflecting the company’s mid-tier size within the sector. This rating adjustment underscores the deteriorating financial and price performance observed in recent months.
The stock’s consistent underperformance relative to the BSE500 index over one, three, and five-year periods further highlights the challenges faced by the company in delivering shareholder value.
Summary of Key Performance Indicators
To encapsulate, Sula Vineyards Ltd’s share price has reached an all-time low, closely approaching its 52-week trough. The stock’s persistent decline across multiple time horizons, combined with weakening profitability and subdued operating cash flows, paints a comprehensive picture of the current market valuation and investor sentiment.
While valuation metrics suggest the stock is trading at a discount relative to peers, the financial results and price trends indicate a period of significant pressure on the company’s earnings and market capitalisation.
Comparative Sector Performance
Within the beverages sector, Sula Vineyards has notably underperformed. Its sector-relative performance today was weaker by 1.42%, and over the past month and quarter, the stock’s losses have outpaced sector averages. This divergence emphasises the stock’s distinct challenges compared to its industry counterparts.
Conclusion
The all-time low price level for Sula Vineyards Ltd reflects a culmination of subdued growth, declining profits, and sustained selling pressure. The company’s financial metrics and market ratings provide a detailed view of its current standing within the Indian equity market, underscoring the severity of its recent performance trends.
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