Sula Vineyards Stock Hits All-Time Low Amid Prolonged Downtrend

Recent Price Movements and Market Performance

On 11 Dec 2025, Sula Vineyards’ share price touched ₹213, setting both a 52-week and all-time low. The stock has recorded a consecutive two-day decline, with a cumulative return of -1.97% over this short span. Today’s trading session saw the stock fall by 0.28%, underperforming the broader Sensex index, which showed a marginal gain of 0.06%. Furthermore, the stock lagged behind its sector peers by 0.4% on the day.

Examining moving averages, Sula Vineyards is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained downward momentum across multiple timeframes.

Comparative Performance Over Various Time Horizons

Over the past week, the stock has declined by 4.30%, contrasting with the Sensex’s 0.97% fall. The one-month period shows a sharper reduction of 13.82%, while the Sensex recorded a positive 0.68% return. The three-month performance reveals a 25.44% decrease for Sula Vineyards, whereas the Sensex gained 3.54% during the same period.

Longer-term figures are more pronounced, with the stock registering a 51.99% fall over the last year, compared to a 3.57% rise in the Sensex. Year-to-date returns stand at -48.67%, while the Sensex has advanced by 8.06%. Notably, the stock has not shown any gain over the past three, five, and ten years, contrasting sharply with the Sensex’s respective gains of 35.79%, 83.17%, and 237.16%.

Financial Results and Profitability Trends

The company’s recent quarterly results have reflected a challenging environment. Profit before tax (PBT) for the quarter stood at ₹7.44 crores, representing a 56.1% reduction compared to the previous four-quarter average. Similarly, profit after tax (PAT) for the quarter was ₹6.02 crores, down by 58.1% relative to the prior four-quarter average.

Over the last three consecutive quarters, Sula Vineyards has reported negative results, with the September 2025 quarter showing a PBT decline of 53.68%. Operating cash flow for the year was recorded at ₹64.03 crores, the lowest level observed in recent periods.

Operating profit has exhibited a negative compound annual growth rate of 10.18% over the past five years, indicating subdued long-term growth trends.

Valuation and Capital Efficiency Metrics

Despite the subdued financial performance, the company’s return on capital employed (ROCE) stands at 9.4%, which is considered attractive within its sector. The enterprise value to capital employed ratio is 2.3, suggesting a valuation discount relative to historical averages of peer companies.

However, the stock’s profitability has contracted by 42.7% over the past year, aligning with the negative returns observed in the share price.

Shareholding and Market Context

Institutional investors hold a significant stake in Sula Vineyards, accounting for 22.06% of the share capital. These investors typically possess greater resources and analytical capabilities to assess company fundamentals compared to retail participants.

The stock’s performance has also lagged behind the BSE500 index over the last three years, one year, and three months, underscoring its relative underperformance within the broader market.

Summary of Market Position

Sula Vineyards’ stock has experienced a marked decline, reaching its lowest price point ever amid a backdrop of subdued financial results and relative underperformance against key market indices. The company’s profitability metrics and returns over multiple timeframes highlight a period of limited growth and contraction in earnings.

While valuation ratios suggest the stock is trading at a discount compared to peers, the recent financial data and price trends reflect a cautious market stance towards the company’s current standing within the beverages sector.

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