Sula Vineyards Ltd. (SULA) AI Stock Analysis

• Market Cap: ₹21.45B
• Dividend Yield: 1.41%
• Average Volume (3M): 60.36K
• Price to Earnings (P/E): 37.5
• Beta (1Y): 1.32
• Revenue Growth: -2.12%
• EPS Growth: -39.06%
• Country: IN
• Employees: 762
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 0.20
• Shares Outstanding: 84,430,030
• 10 Day Avg. Volume: 19,807
• 30 Day Avg. Volume: 60,359
• 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: ₹280.00
• Price Target Upside: 12.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: ₹288.00 ▲(15.52% Upside)

Sula Vineyards' overall stock score is driven by strong financial performance, despite challenges in cash flow and profitability. The technical analysis suggests a cautious outlook with bearish trends, while the valuation indicates potential overvaluation. The absence of earnings call and corporate events data limits further insights.

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 demonstrates strong revenue growth and stable operational performance. However, challenges in profit margins and negative free cash flow in 2025 highlight areas for improvement. The balance sheet remains robust with a favorable debt-to-equity ratio, but diminishing returns on equity indicate a need for better profitability management.

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	1.84B	1.59B	1.17B	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: 249.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 249.3 is below the 20-day moving average (MA) of 258.47, below the 50-day MA of 261.93, and below the 200-day MA of 292.39, indicating a bearish trend. The MACD of -4.89 indicates Positive momentum. The RSI at 43.53 is Neutral, neither overbought nor oversold. The STOCH value of 37.18 is Neutral, 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
SDBL	71 Outperform	₹25.76B	25.79	―	―	3.51%	10.51%
TI	69 Neutral	₹95.74B	33.40	―	0.21%	4.44%	81.43%
ASALCBR	68 Neutral	₹19.13B	21.89	―	0.19%	27.55%	56.11%
SULA	64 Neutral	₹21.45B	37.52	―	1.41%	-2.12%	-39.06%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
RKDL	41 Neutral	₹636.48M	526.19	―	―	57.93%	―