Sula Vineyards Ltd. (SULA) AI Stock Analysis

Sula Vineyards Ltd.

(NSE:SULA)

Select Model

Rating:55Neutral

Price Target:INR 129.00▲(0.74% Upside)

Action:reiterated

Date:08/09/26

The score is held back primarily by weakened FY2026 operating performance (revenue decline and sharp margin/ROE compression) and a high P/E that offers limited valuation cushion. Offsetting factors include moderate and improving leverage, a rebound to positive free cash flow, and technical indicators that point to stabilization but not a strong uptrend.

Positive Factors

Diversified wine and tourism modelSula’s combination of branded beverage sales and wine tourism creates complementary revenue streams. Tourism can deepen consumer engagement and support direct-to-consumer monetization, while the established wine portfolio provides broader channel reach and reduces reliance on a single earning mechanism.

Negative Factors

Recent revenue contractionRevenue contraction weakens the foundation for durable earnings growth and suggests that recent market expansion has lost momentum. If sales do not reaccelerate, Sula may have less operating leverage, reduced capacity to absorb costs, and fewer resources to strengthen its brands and distribution.

Sula Vineyards Ltd. (SULA) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 10.61B
Dividend Yield: 1.59%
Average Volume (3M): 27.09K
Price to Earnings (P/E): 42.7
Beta (1Y): 1.55
Revenue Growth: -1.54%
EPS Growth: -56.95%
Country: India
Employees: 713
Sector: General
Sector Strength: 55
Industry: Beverages - Wineries & Distilleries

Sula Vineyards Ltd. Business Overview & Revenue Model

Company Description

Sula Vineyards Limited manufactures, purchases, and sells wine and other alcoholic beverages in India and internationally. It offers white, red, rosé, and sparkling wines; and spirits under the RASA, The Source, Dindori, SULA CLASSICS, and York brand...

How the Company Makes Money

Sula Vineyards makes money through multiple, complementary revenue streams tied to alcoholic beverage sales and wine-related tourism. (1) Branded wine and beverage alcohol sales: The core revenue driver is the sale of bottled wines (and other beverag...

Sula Vineyards Ltd. Financial Statement Overview

Summary

Financials show a noticeable recent deterioration: FY2026 revenue declined (~3%) and profitability compressed sharply (net margin ~4.6% vs ~12.1% in FY2025). Balance sheet leverage is moderate and improved over time (debt-to-equity ~0.57), but returns weakened (ROE ~4.4%). Cash flow improved with positive FCF (~0.44B) after FY2025 weakness, though cash generation remains choppy.

Income Statement

58Neutral

Balance Sheet

66Positive

Cash Flow

54Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	5.59B	5.56B	5.79B	5.68B	5.17B	4.24B
Gross Profit	2.87B	2.58B	4.41B	3.15B	3.70B	3.07B
EBITDA	1.03B	1.03B	1.53B	1.82B	1.59B	1.16B
Net Income	247.70M	256.50M	702.00M	933.10M	840.50M	521.39M
Balance Sheet
Total Assets	0	10.96B	10.81B	10.26B	8.81B	7.59B
Cash, Cash Equivalents and Short-Term Investments	71.90M	93.70M	72.20M	971.90M	337.60M	195.84M
Total Debt	0	3.33B	3.15B	3.24B	2.03B	2.40B
Total Liabilities	-5.87B	5.08B	4.94B	4.76B	3.49B	3.63B
Stockholders Equity	5.87B	5.87B	5.86B	5.50B	5.32B	3.95B
Cash Flow
Free Cash Flow	-171.10M	437.70M	-91.00M	618.80M	208.00M	324.62M
Operating Cash Flow	41.10M	759.80M	583.80M	1.21B	899.10M	874.39M
Investing Cash Flow	-219.40M	-342.80M	-748.10M	-428.50M	-743.80M	-567.92M
Financing Cash Flow	245.10M	-417.30M	-735.40M	24.80M	-93.60M	-612.52M

Sula Vineyards Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price128.05

Price Trends

50DMA137.35Negative

100DMA146.08Negative

200DMA157.81Negative

Market Momentum

MACD-2.90Positive

RSI36.17Neutral

STOCH11.59Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SULA, the sentiment is Negative. The current price of 128.05 is below the 20-day moving average (MA) of 131.61, below the 50-day MA of 137.35, and below the 200-day MA of 157.81, indicating a bearish trend. The MACD of -2.90 indicates Positive momentum. The RSI at 36.17 is Neutral, neither overbought nor oversold. The STOCH value of 11.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SULA.

Sula Vineyards Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SULA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:UNITDSPR	76Outperform	INR 969.56B	57.26	―	1.28%	0.49%	2.81%
IN:RADICO	69Neutral	INR 549.36B	68.72	―	0.22%	15.74%	73.87%
IN:ABDL	66Neutral	INR 195.00B	85.57	―	0.77%	-20.08%	-11.20%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:SULA	55Neutral	INR 10.63B	42.75	―	1.59%	-1.54%	-56.95%
IN:GLOBUSSPR	52Neutral	INR 21.34B	19.58	―	0.96%	7.88%	295.37%
IN:ASALCBR	50Neutral	INR 10.77B	12.42	―	0.37%	-5.25%	-10.44%

* General Sector Average

Performance Comparison

IN:SULA and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SULA	Sula Vineyards Ltd.	125.90	-126.20	-50.06%
IN:ABDL	Allied Blenders and Distillers Limited	697.15	19.53	2.88%
IN:ASALCBR	Associated Alcohols & Breweries Ltd.	536.50	-671.48	-55.59%
IN:GLOBUSSPR	Globus Spirits Limited	678.20	-458.20	-40.32%
IN:RADICO	Radico Khaitan Limited	4100.00	913.57	28.67%
IN:UNITDSPR	United Spirits Limited	1333.00	-97.22	-6.80%

Sula Vineyards Ltd. Corporate Events

Sula Vineyards to Discuss Q2 and H1 FY27 Results

Nov 2, 2026

The company operates in India’s wine industry, with wine as its primary product and a focus on the domestic alcoholic-beverages market. As a listed company, it provides periodic financial disclosures to investors and stock exchanges.Sula will h...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 09, 2026

Sula Vineyards Ltd. AI Stock Analysis