Sula Vineyards Ltd. (SULA) AI Stock Analysis

• Market Cap: ₹15.47B
• Dividend Yield: 1.67%
• Average Volume (3M): 20.94K
• Price to Earnings (P/E): 31.5
• Beta (1Y): 1.40
• Revenue Growth: -2.15%
• EPS Growth: -42.78%
• Country: IN
• Employees: 762
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 0.70
• Shares Outstanding: 84,447,230
• 10 Day Avg. Volume: 20,937
• 30 Day Avg. Volume: 20,943
• PEG Ratio: -1.34
• Price to Book (P/B): 3.98
• Price to Sales (P/S): 4.02
• P/FCF Ratio: -256.14
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ₹190.00 ▼(-13.02% Downside)

Sula Vineyards' overall stock score is primarily influenced by its strong financial performance, despite challenges in cash flow and profitability. Technical analysis indicates bearish momentum, and the stock appears overvalued based on its P/E ratio. The lack of earnings call and corporate events data limits additional insights.

Positive Factors

Healthy balance sheet / moderate leverage

A debt-to-equity of ~0.54 and equity covering over half the assets provides financial flexibility and lower default risk. This durable strength supports continued capex for vineyards, absorbs state-level regulatory volatility in alcohol distribution, and enables strategic investments without immediate refinancing stress.

High gross profit margin

A ~76% gross margin indicates strong product-level economics and pricing power for branded wines. This structural margin buffer helps absorb input cost inflation, funds marketing and hospitality expansion, and underpins sustainable profitability even if sales mix shifts toward lower-volume premium or on-site sales over the medium term.

Diversified revenue streams: wines plus hospitality

Revenue from both packaged wine sales and wine tourism/hospitality diversifies cash flow and leverages physical vineyard assets. This dual model reduces reliance on a single channel, supports cross-selling, and provides higher-margin on-site revenue that can be resilient to retail channel disruptions over a multi-quarter horizon.

Negative Factors

Negative free cash flow in 2025

FCF turning negative because of higher capex weakens internal funding for growth and dividends, increasing reliance on external financing. Persistently negative FCF can constrain marketing, distribution expansion, and working capital, raising execution risk if revenue or margin recovery stalls over several quarters.

Declining return on equity

A material fall in ROE reflects reduced efficiency in converting shareholder capital into profit. If sustained, lower ROE signals weaker capital allocation or margin pressure, limiting long-term shareholder returns and making it harder to justify reinvestment or attract capital for expansion in a capital-intensive vineyard/hospitality business.

Falling net profit margin

A drop in net margin despite high gross margins suggests rising operating costs, taxes, or non-operating pressures. Lower net profitability reduces retained earnings and cash available for reinvestment or debt reduction, weakening the company's ability to fund long-term initiatives and maintain returns through industry cycles.

Sula Vineyards Ltd. Business Overview & Revenue Model

Company Description

Sula Vineyards Limited manufactures, purchases, imports, distributes, and sells wine and other alcoholic beverages. It offers white, red, rosé, and sparkling wines; and spirits under the RASA, The Source, Dindori, SULA CLASSICS, and York brand names. The company also owns and operates wine tourism venues, including vineyard resorts and tasting rooms, as well as restaurants. It offers its products through distributors, corporations, licensed resellers, company depots, defense units, and other points of sale, as well as online. The company operates in India, the United States, the United Kingdom, Austria, the United Arab Emirates, Oman, New Zealand, China, France, Italy, Spain, Japan, Australia, Singapore, Belgium, Switzerland, Maldives, Sweden, Holland, Norway, Poland, South Korea, Portugal, Luxembourg, Germany, and the Czech Republic. Sula Vineyards Limited was founded in 1996 and is headquartered in Mumbai, India.

How the Company Makes Money

Sula Vineyards Ltd. generates revenue primarily through the production and sale of its wine products, both domestically and internationally. The company has a wide distribution network that includes retail outlets, restaurants, and hotels, ensuring its products reach a broad consumer base. Additionally, SULA has established a significant presence in the wine tourism sector, with its vineyard resort offering tours, tastings, and accommodation, which contributes to its earnings. Key partnerships with distributors and retailers, along with a focus on export markets, further bolster the company's revenue streams. Seasonal events and festivals hosted at the vineyard also play a role in driving sales and brand visibility.

Sula Vineyards Ltd. Financial Statement Overview

Summary

Sula Vineyards shows strong revenue growth and stable operational performance, but faces challenges with declining profit margins and negative free cash flow in 2025. The balance sheet is robust with a favorable debt-to-equity ratio, though diminishing returns on equity highlight areas for improvement.

Income Statement

Sula Vineyards has demonstrated a solid revenue growth with an increasing trajectory over the past years, notably a 9.8% increase from 2023 to 2024 and a further 2% to 2025. The gross profit margin is strong, rising to approximately 76.2% in 2025, indicating effective cost management. However, the net profit margin decreased from 16.4% in 2024 to 12.1% in 2025, highlighting some challenges in converting revenue to profit. The EBIT margin also decreased slightly, while the EBITDA margin remains healthy, suggesting stability in operational performance.

Balance Sheet

The company's balance sheet shows a healthy equity position with a debt-to-equity ratio that has improved over time, standing at approximately 0.54 in 2025. The equity ratio reflects a stable balance sheet structure, with stockholders' equity covering more than half of the assets. However, the return on equity has decreased from 16.97% in 2024 to 11.97% in 2025, indicating a decline in profitability relative to shareholder investment.

Cash Flow

Sula Vineyards faces challenges in cash flow management, with free cash flow turning negative in 2025 due to increased capital expenditures. The operating cash flow to net income ratio has decreased significantly, pointing to potential issues in cash conversion. Although the operating cash flow remains positive, the decline in free cash flow poses a concern for future investments and financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.76B	5.79B	5.68B	5.17B	4.24B	3.57B
Gross Profit	4.26B	4.41B	3.15B	2.54B	3.07B	1.93B
EBITDA	1.37B	1.53B	1.82B	1.59B	1.16B	605.37M
Net Income	575.10M	702.00M	933.10M	840.50M	521.39M	30.14M
Balance Sheet
Total Assets	0.00	10.81B	10.26B	8.81B	7.59B	7.52B
Cash, Cash Equivalents and Short-Term Investments	72.20M	72.20M	971.90M	337.60M	195.84M	407.91M
Total Debt	0.00	3.15B	3.24B	2.03B	2.40B	3.15B
Total Liabilities	-5.86B	4.94B	4.76B	3.49B	3.63B	4.47B
Stockholders Equity	5.86B	5.86B	5.50B	5.32B	3.95B	3.05B
Cash Flow
Free Cash Flow	0.00	-91.00M	618.80M	208.00M	324.62M	1.03B
Operating Cash Flow	0.00	583.80M	1.21B	899.10M	874.39M	1.20B
Investing Cash Flow	0.00	-748.10M	-428.50M	-743.80M	-567.92M	-217.05M
Financing Cash Flow	0.00	-735.40M	24.80M	-93.60M	-612.52M	-944.78M

Sula Vineyards Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 218.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 218.45 is above the 20-day moving average (MA) of 196.90, above the 50-day MA of 212.25, and below the 200-day MA of 261.29, indicating a bearish trend. The MACD of -8.23 indicates Positive momentum. The RSI at 23.93 is Positive, neither overbought nor oversold. The STOCH value of 10.64 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMBREW	75 Outperform	₹22.12B	13.55	―	0.72%	―	―
TI	66 Neutral	₹89.74B	30.65	―	0.21%	3.35%	56.08%
ASALCBR	66 Neutral	₹15.97B	17.69	―	0.21%	16.02%	48.63%
SDBL	63 Neutral	₹17.40B	16.96	―	―	-0.87%	10.87%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SULA	57 Neutral	₹15.47B	31.53	―	1.67%	-2.15%	-42.78%
RKDL	41 Neutral	₹482.64M	403.82	―	―	4.30%	-40.22%

Sula Vineyards Ltd. Corporate Events

Sula Vineyards Sets 9 February Earnings Call for Q3 and Nine-Month FY26 Results

Sula Vineyards has scheduled an earnings conference call on 9 February 2026 at 4:00 p.m. IST to discuss its financial results for the third quarter and nine months ended 31 December 2025. The call, to be led by MD & CEO Rajeev Samant and CFO Abhishek Kapoor, underscores the company’s ongoing engagement with investors and analysts as it provides an update on its recent operating and financial performance.

Sula Vineyards’ Company Secretary and Compliance Officer Resigns, Successor Identified

Sula Vineyards Ltd. has announced that its Company Secretary and Compliance Officer, Ms. Shalaka Koparkar, a designated Key Managerial Personnel, has resigned from her roles due to personal reasons. Her resignation, tendered in September 2025 and accepted by the board, becomes effective from the close of business on 24 December 2025, at which point she will cease to be responsible for regulatory compliance and materiality determinations under the Companies Act and SEBI Listing Regulations. The company has indicated that it has already identified a suitable successor and plans to formalize the appointment subject to necessary approvals, signalling an effort to ensure continuity in corporate governance and compliance oversight for investors and regulators.

Sula Vineyards Secures Approval for CEO Re-appointment

Sula Vineyards Limited announced the successful approval of a resolution regarding the re-appointment and remuneration of Mr. Rajeev Samant as Managing Director and CEO. The resolution was passed with a requisite majority through a postal ballot process, reflecting strong shareholder support for the company’s leadership.

Sula Vineyards Announces Key Leadership Appointments

Sula Vineyards Ltd. has announced the re-appointment of Mr. Rajeev Samant as Managing Director & CEO, effective April 1, 2026, for a three-year term. Mr. Samant, the company’s founder, is credited with establishing the modern wine industry in India and will continue to drive the company’s dual focus on wine and wine tourism. Additionally, Mr. Sahil Misra has been appointed as Global Brand Ambassador & Head of Exports, effective immediately. These leadership appointments are expected to strengthen Sula Vineyards’ market position and support its growth strategies.