Rating Overview and Context
On 06 November 2025, MarketsMOJO revised the rating for Som Distilleries & Breweries Ltd from 'Hold' to 'Sell', accompanied by a significant drop in the Mojo Score from 51 to 31. This adjustment signals a cautious stance on the stock, advising investors to consider reducing exposure or avoiding new purchases. The 'Sell' rating reflects a comprehensive evaluation of the company’s current quality, valuation, financial trend, and technical outlook.
Here’s How the Stock Looks Today
As of 22 January 2026, Som Distilleries & Breweries Ltd remains a small-cap player in the beverages sector, with a Mojo Grade firmly in the 'Sell' category. The stock’s recent price movements show a mixed but predominantly negative trend. It gained 3.8% in the last trading day but has experienced declines over longer periods: -6.64% in one week, -12.7% in one month, and a steep -41.65% over six months. Year-to-date, the stock is down 12.66%, and over the past year, it has underperformed the broader market, delivering a negative return of -12.5% compared to the BSE500’s positive 7.58% return.
Quality Assessment
The company’s quality grade is assessed as average. This indicates that while Som Distilleries & Breweries Ltd maintains a stable operational base, it lacks the robust competitive advantages or consistent earnings growth that typically characterise higher-quality stocks. Investors should note that average quality often translates into moderate risk, especially in a sector as competitive as beverages.
Valuation Perspective
Interestingly, the valuation grade is very attractive. This suggests that the stock is trading at a price level that could be considered a bargain relative to its earnings, assets, or cash flow. For value-oriented investors, this might present an opportunity to acquire shares at a discount. However, valuation alone does not guarantee positive returns, especially if other factors weigh negatively.
Financial Trend and Fundamentals
The financial grade is negative, signalling deteriorating financial health or weakening earnings momentum. This could be due to declining revenues, shrinking profit margins, or increasing debt levels. The negative financial trend is a critical factor behind the 'Sell' rating, as it raises concerns about the company’s ability to sustain growth or generate shareholder value in the near term.
Technical Outlook
From a technical standpoint, the stock is bearish. This reflects downward momentum in price charts and technical indicators, suggesting that market sentiment remains weak. Technical weakness often compounds fundamental challenges, as it can deter new investors and prompt existing shareholders to exit positions.
Implications for Investors
For investors, the 'Sell' rating from MarketsMOJO means caution is warranted. While the stock’s valuation appears attractive, the combination of average quality, negative financial trends, and bearish technical signals suggests that risks currently outweigh potential rewards. Investors should carefully consider their risk tolerance and investment horizon before initiating or maintaining positions in Som Distilleries & Breweries Ltd.
Comparative Market Performance
It is also important to contextualise the stock’s performance against the broader market. The BSE500 index has delivered a positive return of 7.58% over the past year, highlighting that Som Distilleries & Breweries Ltd’s underperformance is not due to general market weakness but company-specific challenges. This relative underperformance further supports the cautious rating.
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Summary and Outlook
In summary, Som Distilleries & Breweries Ltd’s current 'Sell' rating reflects a balanced assessment of its present-day fundamentals and market position. The stock’s very attractive valuation is overshadowed by negative financial trends and bearish technical signals, which together suggest limited upside potential in the near term. Investors should monitor the company’s financial performance closely and consider alternative opportunities within the beverages sector or broader market that offer stronger quality and trend profiles.
Final Considerations
It is essential for investors to understand that the 'Sell' rating does not imply an immediate collapse but rather a recommendation to exercise caution and possibly reduce exposure. The rating is a tool to help manage portfolio risk by highlighting stocks with unfavourable risk-reward characteristics based on current data as of 22 January 2026. As market conditions evolve, so too will the rating, reflecting new information and company developments.
About MarketsMOJO Ratings
MarketsMOJO’s rating system integrates multiple dimensions—quality, valuation, financial trend, and technical analysis—to provide a comprehensive view of a stock’s investment merit. This holistic approach helps investors make informed decisions by considering both quantitative data and market sentiment.
Key Takeaway
For Som Distilleries & Breweries Ltd, the current 'Sell' rating advises prudence. While the stock may appeal to value investors due to its attractive price, the prevailing negative financial and technical outlooks suggest that patience and careful monitoring are necessary before considering any investment.
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