Recent Price Movements and Market Context
The stock has experienced a consistent fall over the past four trading sessions, losing approximately 5% in returns during this period. On 25 Feb 2026, Sula Vineyards closed with a day decline of 0.75%, contrasting with the Sensex’s positive gain of 0.61% on the same day. Over the last week, the stock underperformed the benchmark index, falling 4.39% against the Sensex’s 1.20% decline. The one-month performance further highlights the stock’s struggles, with an 11.42% drop compared to the Sensex’s 1.46% gain.
Longer-term trends reveal a more pronounced underperformance. Over three months, the stock has declined by 26.23%, while the Sensex fell by only 2.19%. The one-year performance is particularly stark, with Sula Vineyards losing 37.54% in value, whereas the Sensex appreciated by 10.90%. Year-to-date figures also show a 20.86% drop for the stock, significantly worse than the Sensex’s 2.92% decline. Over three years, the stock has plummeted 51.52%, in contrast to the Sensex’s 39.13% rise. Notably, the stock has delivered no returns over five and ten years, while the Sensex surged 62.09% and 260.07% respectively during these periods.
Technical indicators underline the bearish sentiment, with Sula Vineyards trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling sustained downward momentum.
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
Financial Performance and Profitability Metrics
Sula Vineyards’ financial results have reflected the stock’s price weakness. The company has reported negative earnings for two consecutive quarters, underscoring the pressure on profitability. The quarterly profit after tax (PAT) stood at ₹10.33 crores, marking a decline of 15.7% compared to the previous four-quarter average.
Operating profit has contracted at an annualised rate of 20.12% over the last five years, indicating a challenging growth environment. The return on capital employed (ROCE) for the half-year ended is at a low 9.59%, signalling limited efficiency in generating returns from invested capital. Additionally, the debtors turnover ratio for the half-year is at 2.49 times, the lowest recorded, suggesting slower collection cycles and potential liquidity concerns.
Institutional Investor Participation
Institutional investors have reduced their holdings by 2.63% in the previous quarter, now collectively owning 19.43% of the company’s shares. This decline in institutional stake may reflect a reassessment of the company’s fundamentals by investors with greater analytical resources.
Valuation and Comparative Analysis
Despite the subdued performance, Sula Vineyards exhibits a very attractive valuation profile. The company’s ROCE of 9.4 is accompanied by an enterprise value to capital employed ratio of 1.9, indicating a discount relative to its peers’ historical valuations. This valuation gap reflects the market’s cautious stance amid the company’s recent financial results and stock price trends.
Profitability has also been under pressure, with profits falling by 55.7% over the past year, further contributing to the stock’s decline. The company’s Mojo Score currently stands at 31.0, with a Mojo Grade of Sell, downgraded from Strong Sell on 6 Feb 2026. The market capitalisation grade is rated 3, reflecting the company’s mid-tier size within the sector.
Sula Vineyards Ltd or something better? Our SwitchER feature analyzes this small-cap Beverages stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Sector and Peer Comparison
Within the beverages sector, Sula Vineyards’ performance has lagged behind its peers and broader market indices. While the sector has shown resilience, the stock’s consistent underperformance over multiple time horizons highlights the severity of its current position. The stock’s trading below all major moving averages further emphasises the prevailing negative momentum relative to sector trends.
Over the past year, the stock’s return of -37.54% contrasts sharply with the Sensex’s 10.90% gain, and the company’s profit decline of 55.7% is a significant factor in this divergence. The company’s market capitalisation grade of 3 places it in the mid-range category, but its financial metrics and price action suggest challenges in maintaining competitiveness within the sector.
Summary of Key Metrics
To summarise, Sula Vineyards Ltd’s stock has reached an all-time low, closing near ₹172.1, just 0.52% above its 52-week low. The stock has declined over 5% in the last four days and is trading below all major moving averages. Financially, the company has reported negative earnings for two consecutive quarters, with a PAT decline of 15.7% in the latest quarter and a five-year operating profit contraction at an annualised rate of 20.12%. Institutional investors have reduced their stake by 2.63% in the last quarter, now holding 19.43%. Valuation metrics indicate a discount relative to peers, with an enterprise value to capital employed ratio of 1.9 and a ROCE of 9.4. The Mojo Score stands at 31.0 with a Sell grade, downgraded from Strong Sell earlier this year.
The stock’s performance relative to the Sensex and sector benchmarks over multiple time frames underscores the extent of its decline, with returns significantly below market averages. Profitability pressures and reduced institutional participation further contextualise the stock’s current valuation and market position.
Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today
