Som Distilleries & Breweries Ltd Falls to 52-Week Low of Rs.81.3

Recent Price Movement and Market Context

The stock’s new low of Rs.81.3 stands in stark contrast to its 52-week high of Rs.173.15, highlighting a steep depreciation of over 53% from its peak. This decline comes despite the broader market showing resilience, with the Sensex recovering from an early negative opening to close marginally higher at 82,647.88, just 4.25% shy of its own 52-week high of 86,159.02. While mega-cap stocks have led the market gains, Som Distilleries & Breweries Ltd has lagged considerably behind, trading below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day marks.

Performance Relative to Benchmarks

Over the past year, Som Distilleries & Breweries Ltd has underperformed significantly, delivering a negative return of 26.83%, whereas the Sensex has appreciated by 8.83% and the broader BSE500 index has gained 12.52%. This divergence underscores the stock’s challenges in keeping pace with the overall market and its sector peers.

Financial Results and Profitability Metrics

The company’s recent financial disclosures have contributed to the subdued sentiment. Net sales declined by 16.79% in the December quarter, marking the second consecutive quarter of negative results. Profit after tax (PAT) for the quarter stood at Rs.4.61 crore, down sharply by 76.0% compared to the previous period. Return on Capital Employed (ROCE) for the half-year has dropped to a low of 15.79%, while the operating profit to interest coverage ratio has fallen to 2.58 times, indicating tighter margins and increased financial strain.

Valuation and Quality Scores

Som Distilleries & Breweries Ltd currently holds a Mojo Score of 29.0, categorised as a Strong Sell, an upgrade from its previous Sell rating as of 6 Nov 2025. The company’s market capitalisation grade is rated 3, reflecting its small-cap status within the beverages sector. Despite the recent downturn, the stock’s valuation metrics suggest a relatively attractive entry point, with an enterprise value to capital employed ratio of 1.9, which is below the average historical valuations of its peers.

Long-Term Growth Trends

While recent quarters have been challenging, the company 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. However, this growth has not translated into consistent profitability in the short term, as evidenced by the 9.1% decline in profits over the past year.

Sector and Market Dynamics

The beverages sector, in which Som Distilleries & Breweries Ltd operates, has faced mixed conditions. Although the broader market and mega-cap stocks have shown resilience, smaller companies like Som Distilleries have struggled to maintain momentum. The stock’s performance today was in line with the sector’s movement, but its relative weakness compared to the Sensex and BSE500 highlights ongoing headwinds.

Summary of Key Metrics

To summarise, Som Distilleries & Breweries Ltd’s stock has reached a new 52-week low of Rs.81.3, reflecting a sustained downtrend over recent sessions. The company’s financial performance has been marked by declining sales and profits, with key ratios such as ROCE and interest coverage at subdued levels. Despite these challenges, the stock’s valuation remains comparatively attractive within its sector, supported by solid long-term growth rates in sales and operating profit.

Market Position and Outlook

Trading below all major moving averages, the stock’s technical indicators point to continued weakness in the near term. The broader market’s positive trajectory, led by mega-cap stocks, contrasts with the underperformance of Som Distilleries & Breweries Ltd, which has lagged both the Sensex and the BSE500 index over the past year. The company’s Mojo Grade of Strong Sell reflects these ongoing concerns, underscoring the cautious stance adopted by market participants.

Conclusion

Som Distilleries & Breweries Ltd’s fall to its 52-week low encapsulates a period of subdued financial results and market underperformance. While the company’s long-term growth metrics remain encouraging, recent quarterly results and valuation pressures have weighed on the stock price. The current market environment and sector dynamics continue to influence the stock’s trajectory, with the latest price action signalling a challenging phase for the company within the beverages industry.

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