Som Distilleries & Breweries Ltd Falls to 52-Week Low of Rs 92

Recent Price Movement and Market Context

On 21 Jan 2026, Som Distilleries & Breweries Ltd’s share price touched an intraday low of Rs.92, representing a decline of 3.26% on the day and a 3.36% drop compared to the previous close. This new 52-week low comes after the stock has experienced six consecutive days of losses, resulting in a cumulative return decline of 9.89% over this period. The stock’s performance today notably underperformed its sector by 1.68%, signalling relative weakness within the beverages industry.

The broader market environment has also been challenging. The Sensex opened 385.82 points lower and closed down 355.38 points at 81,439.27, a 0.9% decline. The index is currently trading below its 50-day moving average, although the 50-day average remains above the 200-day average. The Sensex has now recorded a three-week consecutive fall, losing 5.04% over this timeframe, indicating sustained market pressure.

Technical Indicators and Moving Averages

Som Distilleries & Breweries Ltd is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning suggests a bearish trend in the short to medium term, with the stock facing resistance at multiple levels. The breach of these moving averages often signals a lack of upward momentum and can influence trading behaviour negatively.

Financial Performance and Valuation Metrics

Over the past year, Som Distilleries & Breweries Ltd has delivered a total return of -15.92%, significantly underperforming the Sensex, which has gained 7.38% during the same period. The stock has also lagged behind the BSE500 index, which generated a 5.56% return over the last year. Despite this, the company has demonstrated healthy long-term growth, with net sales increasing at an annualised rate of 37.49% and operating profit rising by 60.19%.

However, certain financial ratios have contributed to the cautious market stance. The company’s Return on Capital Employed (ROCE) for the half-year period stands at 15.79%, which is the lowest recorded level recently. Interest expenses have grown substantially, with the latest six-month interest cost at Rs.9.85 crores, an increase of 85.15%. The operating profit to interest coverage ratio for the quarter is at 8.17 times, indicating a tighter margin of safety compared to previous periods.

Valuation and Peer Comparison

Som Distilleries & Breweries Ltd currently trades at a very attractive valuation, with an enterprise value to capital employed ratio of 2. This valuation is at a discount relative to its peers’ average historical multiples, suggesting that the market is pricing in some degree of risk or uncertainty. The company’s PEG ratio stands at 2.6, reflecting the relationship between its price-to-earnings ratio and earnings growth rate. Over the last year, profits have increased by 7.7%, despite the negative share price performance.

Sector and Industry Considerations

Operating within the beverages sector, Som Distilleries & Breweries Ltd faces competitive pressures and market dynamics that influence its stock performance. The sector itself has experienced mixed results, with some companies maintaining steady growth while others have faced valuation adjustments. The stock’s Mojo Score of 31.0 and a Mojo Grade of Sell, downgraded from Hold on 6 Nov 2025, reflect a cautious outlook based on current fundamentals and market conditions.

Summary of Key Metrics

To summarise, Som Distilleries & Breweries Ltd’s stock has declined to Rs.92, its lowest level in 52 weeks, amid a challenging market environment and company-specific financial factors. The stock’s underperformance relative to the Sensex and its sector peers is reflected in its Mojo Grade downgrade to Sell. While the company continues to show growth in sales and operating profit, rising interest costs and a lower ROCE have contributed to the cautious market assessment.

The stock’s valuation remains attractive on certain measures, trading below historical peer multiples, but the recent price action and technical indicators suggest a period of subdued momentum. The broader market’s three-week decline and the Sensex trading below its 50-day moving average add to the overall context in which the stock’s new low has been recorded.

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