Sula Vineyards Ltd. (SULA) AI Stock Analysis

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Sula Vineyards Ltd.

(NSE:SULA)

Select Model

Rating:51Neutral

Price Target:INR 138.00▼(-2.47% Downside)

Action:reiterated

Date:11/10/26

The overall score is constrained by a significant deterioration in profitability and a very high P/E ratio, which together signal elevated fundamental risk. The balance sheet provides some stability, and technicals show tentative short-term improvement, but the stock remains below key long-term moving averages. The primary concern is whether the company can reverse the recent margin decline to justify its premium valuation.

Positive Factors

Manageable LeverageLower leverage than in FY2021 indicates improved balance-sheet resilience and reduces the burden of debt service on future cash flows. This gives Sula more flexibility to fund operations, absorb business volatility, and pursue growth without relying as heavily on additional borrowing.

Negative Factors

Revenue ContractionRecent revenue contraction signals weaker top-line momentum and raises questions about near-term demand, distribution execution, or pricing effectiveness. If the slowdown persists, it could limit operating leverage, constrain reinvestment, and make recovery in profitability more difficult.

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

Market Cap: INR 11.93B
Dividend Yield: 1.41%
Average Volume (3M): 22.92K
Price to Earnings (P/E): 44.4
Beta (1Y): 1.48
Revenue Growth: -0.47%
EPS Growth: -45.30%
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

Financial performance is mixed. The balance sheet is solid with moderate leverage (D/E 0.57), but the income statement shows a sharp decline in profitability with net margin falling to 4.6% and ROE dropping to 4.4%. Cash flow is positive but weakened, with an operating cash flow coverage ratio of 0.20. The recent margin compression is a significant concern.

Income Statement

40Negative

Balance Sheet

65Positive

Cash Flow

50Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	5.75B	5.56B	5.79B	5.68B	5.17B	4.24B
Gross Profit	2.88B	2.58B	4.41B	3.15B	3.70B	3.07B
EBITDA	1.05B	1.03B	1.53B	1.82B	1.59B	1.16B
Net Income	268.40M	256.50M	702.00M	933.10M	840.50M	521.39M
Balance Sheet
Total Assets	10.58B	10.96B	10.81B	10.26B	8.81B	7.59B
Cash, Cash Equivalents and Short-Term Investments	48.90M	93.70M	72.20M	971.90M	337.60M	195.84M
Total Debt	3.50B	3.33B	3.15B	3.24B	2.03B	2.40B
Total Liabilities	4.77B	5.08B	4.94B	4.76B	3.49B	3.63B
Stockholders Equity	5.81B	5.87B	5.86B	5.50B	5.32B	3.95B
Cash Flow
Free Cash Flow	0	437.70M	-91.00M	618.80M	208.00M	324.62M
Operating Cash Flow	0	759.80M	583.80M	1.21B	899.10M	874.39M
Investing Cash Flow	0	-342.80M	-748.10M	-428.50M	-743.80M	-567.92M
Financing Cash Flow	0	-417.30M	-735.40M	24.80M	-93.60M	-612.52M

Sula Vineyards Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price141.50

Price Trends

50DMA135.77Positive

100DMA144.39Negative

200DMA155.11Negative

Market Momentum

MACD1.68Negative

RSI62.12Neutral

STOCH82.18Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SULA, the sentiment is Positive. The current price of 141.50 is above the 20-day moving average (MA) of 133.76, above the 50-day MA of 135.77, and below the 200-day MA of 155.11, indicating a neutral trend. The MACD of 1.68 indicates Negative momentum. The RSI at 62.12 is Neutral, neither overbought nor oversold. The STOCH value of 82.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 1.03T	60.83	―	1.20%	0.49%	0.86%
IN:ABDL	66Neutral	INR 211.71B	92.88	―	0.71%	-20.08%	-11.20%
IN:RADICO	66Neutral	INR 616.22B	77.43	―	0.20%	15.74%	73.87%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:GLOBUSSPR	52Neutral	INR 22.99B	22.98	―	0.89%	10.78%	101.48%
IN:SULA	51Neutral	INR 11.95B	44.41	―	1.41%	-0.47%	-45.30%
IN:ASALCBR	50Neutral	INR 11.35B	13.09	―	0.35%	-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.	141.50	-102.56	-42.02%
IN:ABDL	Allied Blenders and Distillers Limited	756.90	92.52	13.93%
IN:ASALCBR	Associated Alcohols & Breweries Ltd.	565.35	-409.60	-42.01%
IN:GLOBUSSPR	Globus Spirits Limited	730.65	-454.84	-38.37%
IN:RADICO	Radico Khaitan Limited	4599.00	1321.22	40.31%
IN:UNITDSPR	United Spirits Limited	1415.10	-2.28	-0.16%

Sula Vineyards Ltd. Corporate Events

Sula Vineyards reports GST order over Nashik restaurant services

Nov 9, 2026

Sula Vineyards Limited is associated with vineyard-estate restaurant services, including RASA and Tasting Room in Nashik. The release concerns tax treatment of those services under the CGST and MGST regimes.An Order-in-Original dated 30 October 2026,...

Sula Vineyards Submits Q2 and H1 FY27 Investor Presentation

Nov 5, 2026

Sula Vineyards Limited operates in India’s wine and hospitality industry, producing wines and offering winery tourism experiences with a focus on the domestic market. The company is one of India’s prominent organized wine producers.The company submit...

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 host an...

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: Nov 10, 2026

Sula Vineyards Ltd. AI Stock Analysis