Sula Vineyards (SULA)

FairStock Score: 3/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 1/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At ₹175.44, Sula is not a business I would rush to own. The market cap is ₹1,445 crore, but what am I buying? Profits have collapsed: profit growth is -63.83% and sales are down -9.87%. A P/E of 46.41 would be expensive even for a growing company; for a company shrinking this much, it is a warning. The ROE of 0.71% is barely a whisper, far below what I would demand from equity. ROCE at 13.25% shows some underlying earning power, but debt/equity of 0.71 matters more when earnings fall. I don't see a durable moat in these numbers; falling sales and profits suggest the brand cannot command premium pricing. The Piotroski F-score of 3/9 tells me the financial health is weak. The FairStock score of 0/100 reinforces this concern. Promoter holding of only 24.35% gives me pause; I like owner-operators with more skin in the game. Yes, there is a 2.10% dividend yield, but that is small comfort when the latest quarter produced only ₹9 crore net profit on ₹180 crore sales. Graham taught me to buy with a margin of safety. At 2.62 times book value, with book value at ₹66.85, there is no margin here. The 52-week range shows the market has already cut the price from ₹296.80, but a falling knife is not a bargain. I need evidence of stabilisation: a quarter with sales growth, an F-score above 5, and improved return on equity. Until then, this is a cyclical or troubled business selling at a price that assumes recovery. I prefer to let others speculate. As Buffett says, it is far better to lose an opportunity than to lose capital.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer