Recent Price Movement and Market Context
On 3 December 2025, Sula Vineyards' share price touched Rs.226, its lowest level in the past year and an all-time low for the company. This price point represents a decline of 1.53% on the day and a cumulative fall of 5.09% over the last four trading sessions. The stock is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a persistent downward trend.
In contrast, the broader market index, Sensex, experienced a decline of 0.38% on the same day, closing at 84,817.22 points after a flat opening. Despite this dip, Sensex remains close to its 52-week high of 86,159.02, trading just 1.58% below that peak. The index is supported by bullish moving averages, with the 50-day moving average positioned above the 200-day moving average, signalling overall market resilience despite sector-specific pressures.
Performance Comparison and Sectoral Positioning
Over the past year, Sula Vineyards has underperformed significantly relative to the Sensex. The stock has recorded a negative return of 47.89%, while the Sensex has shown a positive return of 4.91% over the same period. The beverages sector, to which Sula Vineyards belongs, has faced mixed performance, with the stock’s decline aligning with sectoral challenges but exceeding the sector’s average losses.
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Financial Results and Profitability Trends
Sula Vineyards has reported a series of financial results that reflect subdued profitability. The company’s profit before tax (PBT) declined by 53.68% in the September 2025 quarter, continuing a trend of negative results over the last three consecutive quarters. The quarterly PBT stood at Rs.7.44 crore, representing a 56.1% reduction compared to the average of the previous four quarters.
Similarly, the profit after tax (PAT) for the quarter was Rs.6.02 crore, down by 58.1% relative to the prior four-quarter average. Operating cash flow for the year was recorded at Rs.64.03 crore, marking the lowest level in recent years. These figures highlight challenges in maintaining earnings momentum and cash generation capacity.
Long-Term Growth and Valuation Metrics
Over the last five years, the company’s operating profit has shown a negative compound annual growth rate of 10.18%, indicating a contraction in core earnings. This long-term trend has contributed to the stock’s subdued performance and its current valuation levels.
Despite these challenges, Sula Vineyards exhibits a return on capital employed (ROCE) of 9.4%, which is considered attractive relative to some peers. The enterprise value to capital employed ratio stands at 2.4, suggesting the stock is trading at a discount compared to the average historical valuations of its sector counterparts.
Shareholding and Institutional Interest
Institutional investors hold a significant stake in Sula Vineyards, accounting for 22.06% of the share capital. This level of institutional ownership indicates a degree of confidence in the company’s fundamentals from investors with extensive analytical resources.
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Comparative Returns and Market Position
In addition to the one-year return of -48.09%, Sula Vineyards has underperformed the BSE500 index over the last three years, one year, and three months. The stock’s 52-week high was Rs.456, which contrasts sharply with the current price level, underscoring the extent of the decline.
Profitability has also been affected, with reported profits falling by 42.7% over the past year. This combination of price and earnings contraction has contributed to the stock’s current valuation discount relative to its peers.
Sector and Market Dynamics
The beverages sector has experienced varied performance, with some companies maintaining stable earnings while others face headwinds. Sula Vineyards’ recent price movement aligns with sectoral pressures but is more pronounced than the average sector decline. The broader market’s resilience, as indicated by Sensex’s proximity to its 52-week high, contrasts with the stock’s downward trajectory.
Summary of Key Price and Financial Indicators
The stock’s fall to Rs.226 marks a critical technical level, representing the lowest price point in the last 52 weeks and an all-time low. The consecutive four-day decline and trading below all major moving averages reflect sustained selling pressure. Financial results over recent quarters show contraction in profitability and cash flow, while long-term growth metrics indicate challenges in expanding operating profit.
Institutional shareholding remains notable, and valuation metrics suggest the stock is trading at a discount compared to peers. However, the overall performance trend has been negative, with returns and profits declining over the past year.
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