Som Distilleries & Breweries Ltd Falls to 52-Week Low of Rs.85.94

Stock Performance and Market Context

On 1 Feb 2026, Som Distilleries & Breweries Ltd’s share price touched an intraday low of Rs.85.94, representing a 3.55% drop for the day and a 2.50% decline compared to the previous close. This new low is a notable departure from the stock’s 52-week high of Rs.173.15, reflecting a substantial depreciation of approximately 50.4% over the past year.

The stock’s performance has lagged behind both its sector and the broader market indices. While the BSE Sensex opened 119.19 points higher on the day, it reversed sharply to close down by 1,192.60 points, or 1.3%, settling at 81,196.37. Som Distilleries underperformed its sector by 1.55% on the same day, indicating relative weakness within the beverages segment.

Further technical indicators reveal that the stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This persistent downward trend signals sustained selling pressure and a lack of short-term momentum.

Financial Metrics and Valuation Insights

Som Distilleries & Breweries Ltd’s financial profile presents a mixed picture. The company’s net sales have exhibited robust growth, increasing at an annual rate of 37.49%, while operating profit has expanded even more sharply at 60.19%. Despite these encouraging top-line and operating profit trends, the stock’s market valuation and returns have not mirrored this growth trajectory.

The company’s return on capital employed (ROCE) for the half-year period stands at 15.79%, which is moderate within the beverages sector. However, the operating profit to interest coverage ratio for the quarter has declined to 8.17 times, indicating a tighter margin of safety in servicing debt obligations compared to previous periods.

Market capitalisation metrics also reflect challenges. The company holds a Market Cap Grade of 3, and its Mojo Score has deteriorated to 31.0, resulting in a downgrade from a previous Hold rating to a Sell as of 6 Nov 2025. This downgrade underscores the market’s cautious stance on the stock’s near-term prospects.

Comparative Performance and Market Position

Over the last twelve months, Som Distilleries & Breweries Ltd has underperformed significantly relative to the broader market. The stock has declined by 15.29%, whereas the Sensex has appreciated by 5.78% and the BSE500 index has delivered a 6.25% return over the same period. This divergence highlights the stock’s relative weakness amid a generally positive market environment.

Despite the stock’s negative price performance, the company’s profits have increased by 7.7% over the past year. This disconnect between earnings growth and share price performance is reflected in a high PEG ratio of 17.9, suggesting that the market is pricing in considerable uncertainty or discounting future growth prospects.

Valuation metrics indicate that Som Distilleries is trading at a discount compared to its peers’ historical averages. The enterprise value to capital employed ratio stands at a low 2.0, which may be considered attractive from a valuation standpoint. However, this has not translated into positive price momentum, possibly due to concerns over the company’s interest burden and coverage ratios.

Sector and Market Dynamics

The beverages sector has experienced mixed performance in recent months, with some companies showing resilience while others face headwinds. Som Distilleries & Breweries Ltd’s current market cap grade of 3 reflects its mid-tier positioning within the sector. The downgrade in its Mojo Grade from Hold to Sell signals a reassessment of its relative strength and risk profile by market analysts.

On the broader market front, the Sensex’s technical positioning shows it trading below its 50-day moving average, though the 50-day average remains above the 200-day average, indicating a longer-term uptrend despite short-term volatility. Som Distilleries’ trading below all major moving averages suggests it is currently out of sync with the broader market’s technical momentum.

Interest expenses have risen notably, with the latest six-month interest cost at Rs.9.85 crores, growing by 85.15%. This increase in financial charges has contributed to the lower operating profit to interest coverage ratio, which may be a factor in the cautious market sentiment.

Summary of Key Financial Indicators

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

• New 52-week low price: Rs.85.94
• One-year stock return: -15.29%
• Sensex one-year return: +5.78%
• Net sales growth (annualised): 37.49%
• Operating profit growth (annualised): 60.19%
• ROCE (half-year): 15.79%
• Operating profit to interest coverage (quarterly): 8.17 times
• Interest expense growth (six months): 85.15% to Rs.9.85 crores
• Mojo Score: 31.0 (Sell rating, downgraded from Hold on 6 Nov 2025)
• Market Cap Grade: 3
• PEG ratio: 17.9

These figures illustrate a company with solid revenue and profit growth but facing challenges in translating this into share price appreciation, partly due to rising interest costs and valuation concerns.

Technical and Market Sentiment Overview

The stock’s consistent trading below all major moving averages indicates a prevailing bearish technical sentiment. The day’s decline of 3.55% to Rs.85.94 further emphasises the downward momentum. This technical weakness is compounded by the broader market’s sharp reversal on the same day, which saw the Sensex fall by over 1,190 points after a positive start.

Som Distilleries’ underperformance relative to its sector and the broader market over the past year highlights the stock’s current challenges in regaining investor confidence and market traction.

Conclusion

Som Distilleries & Breweries Ltd’s fall to a 52-week low of Rs.85.94 marks a significant milestone in its recent share price trajectory. Despite strong growth in net sales and operating profit, the stock has underperformed the market and its sector, weighed down by rising interest expenses and subdued technical indicators. The downgrade in its Mojo Grade to Sell reflects these developments. The company’s valuation metrics suggest it is trading at a discount relative to peers, yet this has not been sufficient to arrest the downward price trend amid prevailing market conditions.

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