Stock Performance and Market Context
On the trading day, Winsome Breweries Ltd’s share price declined by 1.08%, underperforming the beverages sector by 1.39%. This marks the sixth consecutive day of losses, during which the stock has fallen by 15.48%. The current price of Rs.22.75 is substantially below its 52-week high of Rs.41.80, representing a decline of approximately 45.6% from that peak.
The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish trend. This technical positioning underscores the challenges the stock faces in regaining upward momentum.
Meanwhile, the broader market environment has also been subdued. The Sensex opened 385.82 points lower and was trading at 81,652.57, down 0.64% on the day. The index has experienced a three-week consecutive decline, losing 4.79% over this period. Although the Sensex remains above its 200-day moving average, it is currently below its 50-day average, indicating some near-term weakness.
Financial Performance and Fundamental Concerns
Winsome Breweries Ltd’s financial indicators reveal ongoing difficulties. The company has reported operating losses, contributing to a weak long-term fundamental strength assessment. Over the past five years, net sales have contracted at an annualised rate of 33.78%, reflecting a significant downturn in revenue generation.
Profitability metrics have also deteriorated sharply. The company’s earnings before interest and taxes (EBIT) to interest ratio averaged -4.63, indicating challenges in servicing debt obligations effectively. Additionally, the company’s operating cash flow for the fiscal year ending September 2025 was negative at Rs. -2.58 crores, the lowest recorded in recent periods.
Negative EBITDA further compounds the risk profile of the stock. Over the last year, profits have declined by 84.2%, while the stock price has fallen by 38.94%. This contrasts with the broader BSE500 index, which generated a positive return of 5.71% over the same timeframe, highlighting the stock’s relative underperformance.
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Shareholding Pattern and Market Capitalisation
The majority of Winsome Breweries Ltd’s shares are held by non-institutional investors, which may influence liquidity and trading dynamics. The company’s market capitalisation grade is rated at 4, reflecting its micro-cap status within the beverages sector.
The stock’s Mojo Score stands at 12.0, with a Mojo Grade of Strong Sell as of 20 Jan 2025, an upgrade from the previous Sell rating. This grading reflects the company’s deteriorated financial health and market performance, signalling caution in valuation and risk assessment.
Comparative Sector and Market Analysis
Within the beverages sector, Winsome Breweries Ltd has notably lagged behind peers. The sector itself has experienced mixed performance, but the company’s sustained decline contrasts with broader sector trends. The Sensex’s modest positive return of 7.67% over the past year further emphasises the stock’s relative weakness.
Technical indicators and fundamental metrics collectively point to a challenging environment for the company. The stock’s trading below all major moving averages and its negative returns over the last year highlight the prevailing downward pressure.
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Summary of Key Metrics
To summarise, Winsome Breweries Ltd’s stock has declined to Rs.22.75, its lowest level in 52 weeks, following a six-day losing streak and a 15.48% drop in that period. The company’s financials reveal a contraction in net sales at an annualised rate of 33.78% over five years, negative operating cash flows, and a poor EBIT to interest coverage ratio of -4.63. Profitability has fallen sharply, with an 84.2% decline in profits over the past year.
The stock’s Mojo Grade of Strong Sell and a Mojo Score of 12.0 reflect these challenges, alongside its underperformance relative to the Sensex and the beverages sector. Trading below all major moving averages further indicates the stock’s subdued technical position.
These factors collectively illustrate the pressures faced by Winsome Breweries Ltd in the current market environment.
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