Som Distilleries & Breweries Ltd Falls to 52-Week Low of Rs.87.25

Stock Price Movement and Market Context

On 27 Jan 2026, Som Distilleries & Breweries Ltd (Stock ID: 216858) recorded a new 52-week low price of Rs.87.25. This decline comes after two consecutive days of losses, with the stock falling by 3.2% over this period. The day’s performance saw the stock underperform its sector by 0.43%, while the broader Sensex index recovered from an initial negative opening to close 0.34% higher at 81,815.40 points.

The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This contrasts with the Sensex, which, despite trading below its 50-day moving average, maintains a positive trend with its 50DMA above the 200DMA. Mega-cap stocks are leading the market gains, while Som Distilleries & Breweries Ltd, a smaller-cap entity, continues to face pressure.

Performance Relative to Benchmarks

Over the past year, Som Distilleries & Breweries Ltd has generated a negative return of -13.86%, significantly lagging behind the Sensex’s positive 8.50% return and the BSE500’s 8.56% gains. This underperformance highlights the stock’s relative weakness within the broader market and its beverages sector peers.

The stock’s 52-week high was Rs.173.15, indicating a substantial decline of nearly 50% from its peak price within the last year. This wide gap underscores the volatility and challenges faced by the company’s shares over the period.

Financial Metrics and Valuation Insights

Som Distilleries & Breweries Ltd’s financial indicators present a mixed picture. The company’s interest expense has grown sharply by 85.15% over the last six months, reaching Rs.9.85 crores. This increase in interest cost has impacted profitability metrics, with the operating profit to interest ratio dropping to a low of 8.17 times in the latest quarter.

The company’s return on capital employed (ROCE) for the half-year period stands at 15.79%, which, while modest, remains a key metric for assessing capital efficiency. Despite this, the stock’s Mojo Score is 31.0, with a Mojo Grade downgraded from Hold to Sell as of 6 Nov 2025, reflecting a cautious stance on the stock’s near-term prospects.

Growth Trends and Valuation Comparisons

On a positive note, Som Distilleries & Breweries Ltd has demonstrated healthy long-term growth. Net sales have increased at an annualised rate of 37.49%, while operating profit has expanded by 60.19% annually. These figures indicate robust top-line and operating performance over the longer term.

The company’s valuation metrics also suggest an attractive entry point relative to peers. With a ROCE of 15.6% and an enterprise value to capital employed ratio of 2, the stock is trading at a discount compared to the average historical valuations of its sector counterparts. However, the price-to-earnings growth (PEG) ratio is elevated at 18, reflecting the disparity between profit growth and current market price.

Sector and Market Environment

The beverages sector, in which Som Distilleries & Breweries Ltd operates, has seen mixed performances. On the day the stock hit its 52-week low, other indices such as NIFTY MEDIA and NIFTY REALTY also recorded new 52-week lows, indicating sectoral and market-wide pressures. Despite this, mega-cap stocks have been driving market gains, leaving smaller-cap stocks like Som Distilleries & Breweries Ltd facing relative headwinds.

Summary of Key Concerns

The stock’s recent decline to Rs.87.25 reflects a combination of factors including increased interest expenses, subdued returns on capital, and sustained underperformance relative to the broader market and sector indices. The downward trend in price, confirmed by trading below all major moving averages, signals continued caution among market participants.

While the company’s long-term growth in sales and operating profit remains encouraging, the elevated PEG ratio and recent downgrade in Mojo Grade to Sell highlight challenges in translating operational growth into shareholder returns in the near term.

Market Capitalisation and Trading Dynamics

Som Distilleries & Breweries Ltd holds a Market Cap Grade of 3, indicating a mid-tier market capitalisation within its sector. The stock’s day change of -1.11% on the day it hit the 52-week low further emphasises the prevailing selling pressure. The stock’s performance over the last year, with a negative return of -13.86%, contrasts sharply with the positive returns of the Sensex and BSE500, underscoring the stock’s relative weakness.

Conclusion

In summary, Som Distilleries & Breweries Ltd’s fall to a 52-week low of Rs.87.25 marks a notable point in its recent trading history. The stock’s performance reflects a complex interplay of rising costs, valuation adjustments, and market dynamics within the beverages sector. While the company continues to report solid growth in sales and profits, the market’s response has been cautious, as evidenced by the downgrade in Mojo Grade and the stock’s sustained underperformance.

Investors and analysts will continue to monitor the stock’s price action and financial metrics closely as it navigates this challenging phase within a competitive sector environment.

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