Som Distilleries & Breweries Receives 'Buy' Rating from MarketsMOJO for Strong Growth and Positive Results.

Som Distilleries & Breweries, a smallcap company in the breweries industry, has recently received a 'Buy' rating from MarketsMOJO on May 30, 2024. This upgrade is based on the company's strong long-term growth, positive financial results, and bullish technical indicators.
One of the main reasons for the 'Buy' rating is the company's healthy long-term growth, with a 26.63% annual growth rate in net sales. In addition, the company's operating profit has also seen a significant increase of 59.42%, leading to very positive results in March 2024. This trend has continued for the past 9 consecutive quarters, showcasing the company's consistent performance.

The company's return on capital employed (ROCE) is also at a high of 18.37%, indicating efficient use of capital. Furthermore, the net sales and profit before tax have also seen a strong growth of 51.09% and 63.88% respectively in the last quarter.

From a technical standpoint, the stock is currently in a mildly bullish range and has shown a positive trend since May 29, 2024, with a return of -1.47%. Multiple technical indicators such as MACD, Bollinger Band, KST, and OBV are also bullish, further supporting the 'Buy' rating.

In terms of valuation, the stock is trading at a discount compared to its historical average and has a very attractive ROCE of 17.9. Over the past year, the stock has generated a return of 38.30%, while its profits have increased by 43.5%, resulting in a low PEG ratio of 0.8.

Moreover, the promoters of the company have shown high confidence in the business by increasing their stake by 0.53% in the previous quarter, currently holding 35.26% of the company. This is a positive sign for the future of the company.

However, there are some risks associated with investing in Som Distilleries & Breweries. The company has a high debt to EBITDA ratio of 0 times, which may affect its ability to service debt. Additionally, the company's return on equity (ROE) is at a low of 7.23%, indicating low profitability per unit of shareholders' funds.

In conclusion, Som Distilleries & Breweries is a smallcap company in the breweries industry that has shown consistent growth, positive financial results, and bullish technical indicators. While there are some risks involved, the company's 'Buy' rating from MarketsMOJO suggests a positive outlook for its future.