Sula Vineyards Stock Hits All-Time Low Amidst Prolonged Downtrend

Recent Price Movements and Market Context

On 9 December 2025, Sula Vineyards' share price touched an intraday low of ₹213.35, representing a fall of 2.16% during the trading session. The stock has been on a downward trajectory for three consecutive days, accumulating a total return loss of 4.84% over this period. This recent performance has underperformed the beverages sector by 1.28% on the day.

When compared to broader market indices, Sula Vineyards' one-day decline of 1.88% contrasts with the Sensex's smaller fall of 0.68%. Over the past week, the stock's return was down by 6.47%, while the Sensex declined by 0.72%. The divergence becomes more pronounced over longer time frames, with the stock showing a 14.25% reduction over one month against a 1.57% gain in the Sensex, and a 22.98% decline over three months compared to the Sensex's 4.22% rise.

Long-Term Performance Analysis

Examining the stock's performance over the past year reveals a substantial return loss of 50.38%, in stark contrast to the Sensex's 3.70% gain. Year-to-date figures similarly show a decline of 48.82% for Sula Vineyards, while the Sensex has advanced by 8.17%. Over three and five-year horizons, the stock has not recorded any positive returns, remaining flat at 0.00%, whereas the Sensex has appreciated by 35.93% and 83.33% respectively. The ten-year comparison further highlights this disparity, with the Sensex rising by 237.61% over the period.

Technical Indicators and Moving Averages

From a technical standpoint, Sula Vineyards is trading below its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning indicates a persistent downward momentum in the stock price, reflecting the prevailing market sentiment.

Financial Results and Profitability Trends

The company’s financial disclosures reveal a challenging environment for profitability. The profit before tax (PBT) has shown a decline of 53.68% in the most recent quarter, with the company reporting negative results for three consecutive quarters. Quarterly PBT less other income stood at ₹7.44 crore, reflecting a 56.1% reduction compared to the average of the previous four quarters. Similarly, the profit after tax (PAT) for the quarter was ₹6.02 crore, down by 58.1% relative to the prior four-quarter average.

Operating cash flow for the year is recorded at ₹64.03 crore, marking the lowest level in recent periods. These figures underscore the subdued earnings environment that Sula Vineyards is currently navigating.

Growth and Return Metrics

Over the last five years, the company’s operating profit has exhibited a compound annual decline of 10.18%, indicating a contraction in core earnings capacity. Return on capital employed (ROCE) stands at 9.4%, which is considered attractive relative to valuation metrics. The enterprise value to capital employed ratio is 2.4, suggesting that the stock is trading at a discount compared to historical averages of its peer group.

Comparative Market Performance

In addition to the negative returns over the past year, Sula Vineyards has underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months. Profitability has also been affected, with profits falling by 42.7% over the past year, further reflecting the pressures on the company’s financial health.

Shareholding and Institutional Interest

Institutional investors hold a significant stake in Sula Vineyards, accounting for 22.06% of the shareholding. These investors typically possess greater resources and analytical capabilities to assess company fundamentals, which may influence trading dynamics and valuation considerations.

Summary of Current Situation

Sula Vineyards’ stock has reached a historic low point, reflecting a combination of subdued financial results, extended periods of negative returns, and valuation metrics that indicate a discount relative to peers. The stock’s performance has lagged behind key market indices and sector benchmarks across multiple time frames, highlighting the challenges faced by the company in maintaining growth and profitability.

While the company’s valuation ratios and return on capital employed suggest some degree of attractiveness, the recent financial results and price trends illustrate a period of considerable difficulty. Institutional ownership remains notable, which may play a role in the stock’s market behaviour going forward.

Conclusion

The all-time low price of ₹213.35 for Sula Vineyards marks a significant milestone in the stock’s recent history. The data points to a sustained period of financial contraction and market underperformance within the beverages sector. Investors and market participants will continue to monitor the company’s financial disclosures and market movements closely as the situation evolves.

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