Recent Price Movement and Market Context
On 4 December 2025, Sula Vineyards recorded a closing price of Rs.221.55, the lowest level since its listing. This price point represents a continuation of a five-day losing streak, during which the stock has returned -6.82%. The daily change on this date was -0.29%, contrasting with the Sensex's modest gain of 0.13%. Over the past week, the stock's performance was -6.43%, while the Sensex declined by -0.59%. The divergence becomes more pronounced over longer periods, with Sula Vineyards posting a -12.03% return over one month against the Sensex's 2.11% gain, and a -10.80% return over three months compared to the Sensex's 5.58% rise.
Year-to-date figures further highlight the stock's challenges, with a -46.53% return versus the Sensex's 9.06% advance. Over the last year, Sula Vineyards has delivered a -48.80% return, markedly underperforming the Sensex's 5.26% growth. The stock has also lagged behind the BSE500 index over the past three years, with no recorded gains compared to the index's 35.55% appreciation. This underperformance extends to five- and ten-year horizons, where the stock has remained flat while the Sensex has surged by 89.04% and 232.39% respectively.
Technical Indicators and Moving Averages
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 suggests sustained downward momentum and a lack of short- to medium-term price support. The stock's underperformance relative to its sector is also notable, with a sector underperformance of -0.94% on the day of the all-time low.
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Financial Performance Overview
The company’s financial results have reflected a challenging environment. Operating profit has shown a negative compound annual growth rate of approximately -10.18% over the past five years, indicating subdued growth in core earnings. The latest quarterly results reveal a sharp contraction in profitability, with profit before tax (PBT) declining by -53.68% in the September 2025 quarter. This marks the third consecutive quarter of negative results, underscoring persistent pressures on earnings.
Quarterly PBT excluding other income stood at Rs.7.44 crore, down by -56.1% compared to the average of the previous four quarters. Similarly, 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 was recorded at Rs.64.03 crore, the lowest level observed in recent periods, signalling constraints on cash generation from core operations.
Valuation and Capital Efficiency Metrics
Despite the subdued financial performance, certain valuation metrics present a contrasting picture. The company’s return on capital employed (ROCE) stands at 9.4%, which is considered attractive within its sector. Additionally, the enterprise value to capital employed ratio is 2.4, suggesting that the stock is trading at a discount relative to its peers’ historical valuations. This valuation gap may reflect market caution given the recent financial trends and price performance.
Institutional Holdings and Market Position
Sula Vineyards maintains a significant level of institutional ownership, with 22.06% of shares held by institutional investors. These entities typically possess greater resources and analytical capabilities to assess company fundamentals. The presence of such investors indicates a degree of confidence in the company’s underlying business, despite the recent price and earnings challenges.
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Comparative Performance Within the Beverages Sector
Within the beverages sector, Sula Vineyards’ performance has been notably weaker than many of its peers. The stock’s consistent decline over multiple time frames contrasts with the sector’s overall trends, where many companies have recorded positive returns. This divergence highlights the specific challenges faced by Sula Vineyards in maintaining competitive positioning and market share.
Summary of Key Metrics
To summarise, the stock’s recent all-time low price of Rs.221.55 is accompanied by a series of financial indicators that reflect subdued growth and profitability pressures. The negative returns over one month (-12.03%), three months (-10.80%), one year (-48.80%), and year-to-date (-46.53%) periods stand in contrast to the broader market’s positive performance. Operating profit and PBT have contracted significantly in recent quarters, while cash flow generation has reached low levels. Despite these factors, valuation metrics such as ROCE and enterprise value to capital employed suggest the stock is trading at a discount relative to sector averages.
Investors and market participants will continue to monitor Sula Vineyards’ price movements and financial disclosures closely as the company navigates this challenging phase.
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