Stock Price Movement and Market Context
On 2 Feb 2026, Som Distilleries & Breweries Ltd opened with a gap up of 2%, reaching an intraday high of Rs.88.33. However, the stock reversed course during the session, closing at Rs.85.05, down 1.77% on the day. This closing price represents the lowest level the stock has traded at in the past 52 weeks. The stock has been on a downward trajectory for two consecutive sessions, losing approximately 4.5% over this period.
In comparison, the broader Sensex index recovered sharply after a negative start, gaining 533.92 points to close at 81,089.60, a 0.45% increase. The Sensex’s 50-day moving average remains above its 200-day moving average, signalling a generally positive medium-term trend for the market. Mega-cap stocks led the gains, while Som Distilleries & Breweries, a smaller-cap beverage company, lagged behind.
Som Distilleries is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating sustained downward momentum. The stock’s underperformance is further highlighted by its 1.97% lag relative to the beverages sector on the day.
Financial Performance and Valuation Metrics
Over the past year, Som Distilleries & Breweries Ltd has recorded a negative return of 21.16%, contrasting with the Sensex’s positive 4.62% return over the same period. Despite this, the company has demonstrated healthy long-term growth, with net sales increasing at an annualised rate of 37.49% and operating profit growing by 60.19% annually. This growth reflects the company’s ability to expand its revenue base and improve profitability over time.
The company’s return on capital employed (ROCE) for the half-year period stands at 15.79%, which is considered modest within the industry. The operating profit to interest coverage ratio for the quarter is 8.17 times, indicating that the company generates sufficient earnings to cover its interest obligations comfortably.
Som Distilleries currently holds a Mojo Score of 31.0 and a Mojo Grade of Sell, downgraded from Hold on 6 Nov 2025. The market capitalisation grade is rated at 3, reflecting its small-cap status. The company’s interest expense has grown significantly, with the latest six-month figure at Rs.9.85 crores, an increase of 85.15%, which may be a factor weighing on investor sentiment.
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Valuation and Comparative Analysis
Som Distilleries & Breweries Ltd is currently trading at a discount relative to its peers’ average historical valuations. The company’s enterprise value to capital employed ratio is 2, which is considered very attractive in the beverages sector. Despite the stock’s recent price weakness, the company’s profits have increased by 7.7% over the past year, although this growth has not translated into positive stock returns.
The company’s price/earnings to growth (PEG) ratio stands at 17.4, a figure that suggests the market is pricing in significant growth expectations or reflecting valuation concerns. The stock’s 52-week high was Rs.173.15, indicating a substantial decline of over 50% from that peak.
While the broader BSE500 index has generated returns of 4.56% in the last year, Som Distilleries has underperformed markedly, highlighting challenges in market perception and relative performance within the sector.
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Summary of Key Metrics
To summarise, Som Distilleries & Breweries Ltd’s stock has reached a new 52-week low of Rs.85.05, reflecting a period of sustained price weakness. The stock’s recent performance includes a 4.5% decline over two days and a day’s underperformance relative to its sector by nearly 2%. The company’s financials show robust sales and operating profit growth, but the stock’s valuation and market sentiment remain subdued.
The downgrade in Mojo Grade from Hold to Sell on 6 Nov 2025 underscores the cautious stance on the stock. Interest expenses have risen sharply, and the stock trades below all major moving averages, signalling continued pressure. Despite these factors, the company maintains a reasonable ROCE and interest coverage ratio, indicating operational resilience.
Overall, the stock’s 52-week low highlights the challenges faced in the current market environment, with valuation and relative performance metrics pointing to the reasons behind the price decline.
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