Som Distilleries & Breweries Ltd Falls to 52-Week Low of Rs.81

Recent Price Movement and Market Context

The stock of Som Distilleries & Breweries Ltd (Stock ID: 216858) has been on a declining trajectory over the past four trading sessions, losing a cumulative 4.14% in returns. Today’s fall to Rs.81 represents the lowest price level the stock has seen in the last 52 weeks, down sharply from its 52-week high of Rs.173.15. This decline comes despite the broader market’s mixed performance, with the Sensex falling 488.16 points (-0.88%) to close at 82,564.38, still within 4.35% of its own 52-week high of 86,159.02.

Som Distilleries is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish momentum. The stock’s day change of -1.06% also underperformed the beverages sector by 0.97%, highlighting relative weakness within its industry group.

Financial Performance and Profitability Concerns

The company’s recent financial disclosures have contributed to the subdued investor sentiment. Net sales declined by 16.79% in the December 2025 quarter, marking the second consecutive quarter of negative results. Profit after tax (PAT) for the quarter stood at Rs.4.61 crore, a steep fall of 76.0% compared to the previous period. This sharp contraction in profitability has weighed heavily on the stock’s valuation and market perception.

Return on Capital Employed (ROCE) for the half-year period is reported at 15.79%, the lowest level recorded in recent times. Additionally, the operating profit to interest coverage ratio has dropped to 2.58 times, indicating tighter margins and reduced cushion against financial costs. These metrics underscore the challenges the company faces in maintaining operational efficiency and financial stability.

Comparative Market Performance

Over the past year, Som Distilleries & Breweries Ltd has underperformed significantly relative to the broader market. While the Sensex has delivered a positive return of 10.91% and the BSE500 index has generated 13.50% returns, the stock has declined by 29.80%. This divergence highlights the stock’s relative weakness amid a generally positive market environment.

Profitability trends also reflect this underperformance, with the company’s profits falling by 9.1% over the same period. The stock’s Mojo Score currently stands at 29.0, accompanied by a Mojo Grade of Strong Sell, an upgrade from the previous Sell rating as of 6 November 2025. The market capitalisation grade is rated at 3, indicating a modest size relative to peers.

Valuation and Long-Term Growth Metrics

Despite recent setbacks, Som Distilleries & Breweries Ltd exhibits some positive long-term growth indicators. Net sales have grown at an annualised rate of 38.26%, while operating profit has expanded by 44.30% annually. These figures suggest underlying growth potential in the company’s core business segments.

The company’s ROCE of 15.6% is considered very attractive relative to industry standards, supported by an enterprise value to capital employed ratio of 1.9. This valuation metric indicates that the stock is trading at a discount compared to its peers’ historical averages, which may reflect market caution given recent earnings volatility.

Sector and Industry Positioning

Operating within the beverages sector, Som Distilleries & Breweries Ltd faces competitive pressures that have influenced its recent performance. The sector itself has experienced mixed results, with some peers maintaining steadier growth trajectories. The company’s current market cap grade of 3 suggests it is a mid-sized player within the industry, which may impact its ability to leverage economies of scale or market influence compared to larger competitors.

While the stock’s recent price action and financial results have raised concerns, the company’s historical growth rates and valuation metrics provide a nuanced picture of its market standing. The ongoing decline to the 52-week low of Rs.81 reflects a combination of recent earnings weakness and broader market dynamics affecting the beverages sector.

Summary of Key Metrics

To summarise, Som Distilleries & Breweries Ltd’s key financial and market metrics as of 24 February 2026 are:

• 52-week low price: Rs.81
• 52-week high price: Rs.173.15
• One-year stock return: -29.80%
• Sensex one-year return: 10.91%
• Net sales decline (latest quarter): -16.79%
• PAT decline (latest quarter): -76.0%
• ROCE (half-year): 15.79%
• Operating profit to interest coverage: 2.58 times
• Mojo Score: 29.0 (Strong Sell)
• Market Cap Grade: 3

These figures collectively illustrate the challenges faced by the company in recent quarters, as well as the market’s response through the stock’s price movement.

Market Environment and Broader Indices

The broader market environment has been characterised by volatility, with the Sensex opening 242.12 points lower and closing down by 488.16 points on the day. Despite this, the index remains relatively close to its 52-week high, suggesting resilience in the overall market. The Sensex is trading below its 50-day moving average, although the 50-day average remains above the 200-day moving average, indicating a mixed technical outlook.

In contrast, Som Distilleries & Breweries Ltd’s sustained trading below all major moving averages highlights its relative weakness and the absence of short-term technical support levels.

Conclusion

Som Distilleries & Breweries Ltd’s fall to a 52-week low of Rs.81 reflects a combination of subdued financial results, declining profitability, and technical weakness. While the company has demonstrated strong long-term growth in sales and operating profit, recent quarterly results have been disappointing, contributing to the stock’s underperformance relative to the broader market and its sector peers. The current valuation metrics indicate a discount relative to historical peer averages, but the stock remains under pressure amid ongoing earnings challenges and market headwinds.

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