Som Distilleries Reports Strong Q3 Growth Amid Rising Promoter Confidence and Debt Concerns

Som Distilleries & Breweries has recently undergone an adjustment in evaluation, reflecting the company's ongoing performance and market dynamics. The small-cap player in the Breweries & Distilleries industry has reported positive financial metrics for the third quarter of FY24-25, showcasing a notable annual growth rate in net sales of 25.45%. Over the past nine months, net sales reached Rs 1,103.93 crore, marking a growth of 22.78%. Additionally, the company has consistently delivered positive results for the last 12 consecutive quarters.
The return on capital employed (ROCE) stands at a robust 20.71%, indicating an attractive valuation, particularly with an enterprise value to capital employed ratio of 3.1. Despite a return of -2.60% over the past year, profits have increased by 22.3%, and the company's PEG ratio is positioned at 1.

Promoter confidence appears to be on the rise, with a 0.99% increase in their stake, now totaling 36.32%. However, the company faces challenges with a high debt to EBITDA ratio of 11.51 times, suggesting concerns regarding its ability to service debt.

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