Shares of Sula Vineyards have nearly halved from their peak of ₹699 that the stock had hit in January this year. The stock saw further losses after reporting its September quarter results.

For the September quarter, Sula’s revenue declined by 1.1% from the same period last year to ₹141.2 crore, while its Earnings Before Interest, Before, Interest, Tax, Depreciation and Amortisation (EBITDA) declined by 24%.

Sula’s EBITDA margin narrowed 700 basis points on a year-on-year basis, while overall volumes fell 7.6%.

On the charts, Sula’s Relative Strength Index (RSI) is exactly at 30. An RSI reading below 30 means that the stock is in “oversold” territory.

With the stock having nearly halved from its peak, is it time to buy the stock? Here is what analysts said:

“Despite the ongoing decline, the stock’s relative strength is showing signs of improvement, suggesting a potential shift in sentiment. Currently, it’s hovering around its 200-week EMA support near ₹410, making further dips toward ₹380 a potential accumulation point for long-term investors. Given its 45% correction from peak levels, this zone might offer an attractive entry for those with a longer horizon,” Sacchitanand Uttekar of Tradebulls Securities said.

“However, for a clearer trend reversal suited to trading, a sustained move above the 440 level would be pivotal. In the short term, we might expect Sula’s price to stabilize within the ₹380 – ₹440 range, which could serve as a consolidation phase before any directional move. Monitoring volume and relative strength indicators as the stock approaches these levels could provide additional insight into the timing of entries or position adjustments,” he added.

“Sula has been in a steady downtrend, especially evident after it broke below the neckline of a head and shoulders pattern on the weekly chart—a bearish signal indicating potential further declines. On the daily chart, it is trading below the 200-day Exponential Moving Average (DEMA), which is generally seen as a sign of weakness and continued downside pressure. However, with most momentum indicators currently in oversold territory, there is potential for a relief bounce up to around ₹435, a significant resistance level. Given the overall trend and lack of a confirmed base on the daily chart, it’s advisable to adopt a “wait and watch” approach until there are clearer signs of consolidation or a base formation,” Jigar Patel of Anand Rathi said.

Shares of Sula Vineyards are currently unchanged on Thursday at ₹399.