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 decline comes after the stock experienced a cumulative return loss of 5.09% over the last four trading days. The day’s performance was broadly in line with the beverages sector, which has faced mixed sentiment amid fluctuating market conditions.
The broader market, represented by the Sensex, opened flat with a marginal gain of 12.37 points but later declined by 333.42 points, closing at 84,817.22, down 0.38%. Despite this, the 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 underlying market strength contrasting with Sula Vineyards’ performance.
Technical Indicators and Moving Averages
Sula Vineyards is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates a persistent bearish trend and suggests that the stock has been under pressure for an extended period. The gap between the current price and these averages highlights the challenge the stock faces in regaining momentum.
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Long-Term Performance and Financial Metrics
Over the past year, Sula Vineyards has recorded a return of -47.89%, a stark contrast to the Sensex’s positive 4.89% return during the same period. This underperformance extends beyond the last year, with the stock also lagging behind the BSE500 index over the last three years, one year, and three months.
Financially, the company’s operating profit has shown a negative compound annual growth rate of approximately -10.18% over the last five years. The latest quarterly results reveal a decline in profit before tax (PBT) by 53.68%, with the company reporting negative results for three consecutive quarters. The most recent quarter’s PBT stood at Rs.7.44 crore, down 56.1% compared to the previous four-quarter average. Similarly, the profit after tax (PAT) for the quarter was Rs.6.02 crore, reflecting a 58.1% reduction relative to the prior four-quarter average.
Operating cash flow for the year is reported at Rs.64.03 crore, marking the lowest level in recent periods. These figures collectively illustrate subdued financial performance in both the near and long term.
Valuation and Institutional Holdings
Despite the challenges, Sula Vineyards exhibits a return on capital employed (ROCE) of 9.4%, accompanied by an enterprise value to capital employed ratio of 2.4. These metrics suggest a valuation that is comparatively attractive relative to its peers, with the stock trading at a discount to the average historical valuations within the beverages sector.
Institutional investors hold a significant stake in the company, accounting for 22.06% of shareholdings. This level of institutional ownership indicates a considerable presence of investors with extensive resources and analytical capabilities monitoring the company’s fundamentals.
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Sector and Market Comparison
The beverages sector, in which Sula Vineyards operates, has experienced mixed performance in recent months. While the sector has shown some resilience, Sula Vineyards’ stock has not mirrored this trend, instead moving in the opposite direction. The stock’s 52-week high was Rs.456, indicating a substantial decline of over 50% from that peak to the current 52-week low.
In comparison, the Sensex’s sustained proximity to its 52-week high and its bullish moving averages highlight a divergence between the broader market’s trajectory and the stock’s performance. This divergence underscores the specific pressures faced by Sula Vineyards within its sector and market environment.
Summary of Key Price and Performance Indicators
Sula Vineyards’ current trading price of Rs.226 represents a critical support level, marking the lowest point in the last 52 weeks and an all-time low for the company. The stock’s movement below all major moving averages signals continued downward momentum. The four-day consecutive decline and the cumulative loss of 5.09% over this period reflect ongoing market sentiment challenges.
Financial results over recent quarters have shown contraction in profitability and cash flow, with operating profit and net earnings trending lower. Despite these factors, valuation metrics such as ROCE and enterprise value to capital employed suggest the stock is priced at a discount relative to its sector peers.
Institutional ownership remains notable, indicating that investors with significant analytical resources continue to hold positions in the company.
Conclusion
The fall of Sula Vineyards to its 52-week low of Rs.226 highlights a period of sustained price weakness amid subdued financial performance and sector pressures. While the broader market maintains a more positive stance, the stock’s current position reflects the challenges it faces in reversing its downward trend. The valuation and institutional holding data provide additional context to the stock’s current market standing.
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