Price Movement and Market Context
The stock’s latest low of Rs.79.01 represents a sharp contrast to its 52-week high of Rs.173.15, reflecting a decline of approximately 54.4% over the past year. Despite the broader market’s positive momentum, with the Sensex climbing 0.78% to close at 82,870.89 and nearing its own 52-week high, Som Distilleries & Breweries Ltd has lagged considerably. The Sensex has delivered a 1-year return of 11.08%, while the stock has declined by 30.68% over the same period.
Today, the stock marginally outperformed its sector by 0.99%, and after four consecutive days of decline, it recorded a modest gain. However, it remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating persistent downward pressure on the price trend.
Financial Performance and Ratings
Som Distilleries & Breweries Ltd’s recent financial disclosures have contributed to the subdued market sentiment. The company reported a decline in net sales by 16.79% in the December quarter, which was accompanied by negative results for two consecutive quarters. Profit after tax (PAT) for the quarter stood at Rs.4.61 crore, down 76.0% year-on-year, signalling a significant contraction in profitability.
Return on Capital Employed (ROCE) for the half-year period was recorded at 15.79%, the lowest in recent times, while the operating profit to interest coverage ratio dropped to 2.58 times, reflecting tighter financial margins. These metrics have influenced the company’s Mojo Score, which currently stands at 29.0, with a Mojo Grade of Strong Sell, downgraded from Sell on 6 November 2025.
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Comparative Market Performance
Over the past year, Som Distilleries & Breweries Ltd has underperformed not only the Sensex but also the broader BSE500 index, which generated returns of 14.52%. The stock’s negative return of 30.68% contrasts sharply with the market’s upward trajectory, underscoring the challenges faced by the company within the beverages sector.
Despite the sector’s overall resilience, the company’s share price has been weighed down by its financial results and valuation concerns. The market capitalisation grade for the company is rated at 3, indicating a relatively modest market cap compared to peers.
Valuation and Long-Term Growth Metrics
While recent quarters have been difficult, Som Distilleries & Breweries Ltd has demonstrated healthy long-term growth trends. Net sales have expanded at an annualised rate of 38.26%, and operating profit has grown by 44.30% annually. The company’s ROCE of 15.6% is considered very attractive, and it maintains an enterprise value to capital employed ratio of 1.8, suggesting a valuation discount relative to its historical peer averages.
However, the stock’s profits have declined by 9.1% over the past year, reflecting some erosion in earnings despite revenue growth. This divergence between sales growth and profit contraction has contributed to the cautious market stance.
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Sector and Market Dynamics
The beverages sector, in which Som Distilleries & Breweries Ltd operates, has experienced mixed performance amid evolving consumer preferences and competitive pressures. While mega-cap stocks have led the market rally, smaller companies like Som Distilleries have faced headwinds, reflected in their share price trends and financial results.
Market indicators show the Sensex trading below its 50-day moving average, though the 50-day average remains above the 200-day average, signalling a cautiously optimistic market environment. Som Distilleries’ position below all major moving averages highlights the stock’s current relative weakness within this context.
Summary of Key Financial Ratios
Key financial ratios underline the challenges faced by the company. The operating profit to interest coverage ratio at 2.58 times is notably low, indicating limited buffer to cover interest expenses. The ROCE figure of 15.79% is the lowest recorded recently, signalling pressure on capital efficiency. These factors have contributed to the company’s downgrade to a Strong Sell rating by MarketsMOJO, reflecting the cautious outlook based on fundamentals and market performance.
Conclusion
Som Distilleries & Breweries Ltd’s stock reaching a 52-week low of Rs.79.01 marks a significant milestone in its recent price trajectory. The decline reflects a combination of subdued quarterly results, profit contraction, and valuation concerns amid a broader market that has otherwise shown resilience. While the company exhibits strong long-term sales growth and attractive valuation metrics, the near-term financial performance and market positioning have weighed on investor sentiment and share price.
As of 25 February 2026, the stock remains under pressure, trading below all major moving averages and continuing to trail the broader market and sector indices. The downgrade to a Strong Sell rating by MarketsMOJO further underscores the challenges faced by the company in the current market environment.
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