Sula Vineyards Ltd (SULA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Tilaknagar Inds.

IFB Agro Inds.

Globus Spirits

G M Breweries

Assoc.Alcohols

BCL Industries

Som Distilleries

Sula Vineyards

FratelliVineyard

Jagatjit Inds.

Monika Alcobev

Why is Sula Vineyards Ltd ?

Poor long term growth as Operating profit has grown by an annual rate -10.18% of over the last 5 years

The company has declared Negative results for the last 2 consecutive quarters

ROCE(HY) Lowest at 9.59%
DEBTORS TURNOVER RATIO(HY) Lowest at 2.49 times
PAT(Q) At Rs 10.33 cr has Fallen at -15.7% (vs previous 4Q average)

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -2.63% over the previous quarter and collectively hold 19.43% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Below par performance in long term as well as near term

Along with generating -44.50% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Beverages)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Sula Vineyards for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sula Vineyards

-44.22%

-1.45

30.72%

Sensex

7.97%

0.69

11.53%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.99%

EBIT Growth (5y)

-10.18%

EBIT to Interest (avg)

4.93

Debt to EBITDA (avg)

2.14

Net Debt to Equity (avg)

0.67

Sales to Capital Employed (avg)

0.62

Tax Ratio

20.37%

Dividend Payout Ratio

76.88%

Pledged Shares

Institutional Holding

19.43%

ROCE (avg)

15.00%

ROE (avg)

13.87%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.81

EV to EBIT

22.11

EV to EBITDA

15.70

EV to Capital Employed

2.08

EV to Sales

3.47

PEG Ratio

Dividend Yield

1.91%

ROCE (Latest)

9.42%

ROE (Latest)

8.67%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Bearish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

NET SALES(Q)

At Rs 180.39 cr has Grown at 27.4% (vs previous 4Q average

-16What is not working for the Company

ROCE(HY)

Lowest at 9.59%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.49 times

PAT(Q)

At Rs 10.33 cr has Fallen at -15.7% (vs previous 4Q average

DEBT-EQUITY RATIO(HY)

Highest at 0.71 times

PBT LESS OI(Q)

At Rs 13.35 cr has Fallen at -7.7% (vs previous 4Q average

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Here's what is working for Sula Vineyards

Net Sales - Quarterly

At Rs 180.39 cr has Grown at 27.4% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 141.60 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Here's what is not working for Sula Vineyards

Profit After Tax (PAT) - Quarterly

At Rs 10.33 cr has Fallen at -15.7% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 12.26 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 2.49 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 13.35 cr has Fallen at -7.7% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 14.47 Cr

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Debt-Equity Ratio - Half Yearly

Highest at 0.71 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio