Som Distilleries & Breweries Ltd Falls to 52-Week Low of Rs.90.2

Stock Price Movement and Market Context

On 23 Jan 2026, Som Distilleries & Breweries Ltd (Stock ID: 216858) touched an intraday low of Rs.90.2, representing a 2.01% decline for the day and underperforming its sector by 1.9%. This new 52-week low contrasts sharply with its 52-week high of Rs.173.15, underscoring a substantial depreciation in value over the past year.

The broader market environment was also subdued, with the Sensex falling by 734.74 points (-0.86%) to 81,601.20 after a flat opening. The Sensex is currently trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating mixed technical signals for the market overall.

Som Distilleries is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — reflecting sustained downward momentum in the stock price.

Performance Metrics and Financial Indicators

Over the last twelve months, Som Distilleries & Breweries Ltd has recorded a negative return of -15.40%, significantly underperforming the Sensex’s positive return of 6.66% and the BSE500’s 5.43% gain. This divergence highlights the stock’s relative weakness within the broader market and its sector.

The company’s Mojo Score currently stands at 31.0, with a Mojo Grade of Sell, downgraded from Hold on 6 Nov 2025. The Market Cap Grade is rated 3, indicating a moderate market capitalisation relative to peers.

Interest expenses have risen sharply, with the latest six-month figure at Rs.9.85 crores, reflecting an 85.15% increase. This rise in interest costs has impacted profitability metrics, with the operating profit to interest coverage ratio at a low of 8.17 times for the quarter, signalling tighter financial flexibility.

Return on Capital Employed (ROCE) for the half-year period is at 15.79%, the lowest recorded recently, which may be a factor in the stock’s subdued performance.

Growth Trends and Valuation Considerations

Despite the recent price weakness, 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% over the same period. These figures indicate robust top-line and operating margin expansion.

The company’s ROCE of 15.6% is considered attractive, supported by a low enterprise value to capital employed ratio of 2.1, suggesting the stock is trading at a discount relative to its peers’ historical valuations.

Profit growth over the past year has been positive, with a 7.7% increase, although this has not translated into share price appreciation. The PEG ratio stands at 18.4, reflecting the relationship between price, earnings growth, and valuation.

Comparative Market Performance

Som Distilleries & Breweries Ltd’s underperformance is notable when compared to the BSE500 index, which has generated a 5.43% return over the last year. The stock’s negative return of -15.40% contrasts with the broader market’s gains, highlighting challenges in maintaining investor confidence.

The downgrade in Mojo Grade from Hold to Sell on 6 Nov 2025 reflects a reassessment of the company’s financial and market position, influenced by rising interest costs and lower coverage ratios.

Summary of Key Concerns

The stock’s decline to Rs.90.2 marks a significant technical low, reflecting a combination of factors including increased interest expenses, reduced interest coverage, and a downgrade in Mojo Grade. The persistent trading below all major moving averages signals continued downward pressure.

While the company’s sales and operating profit growth remain strong, the market has not rewarded these fundamentals, possibly due to concerns over financial leverage and relative valuation metrics.

Som Distilleries & Breweries Ltd’s market capitalisation and Mojo Score suggest moderate risk, with the current Sell rating indicating caution among market analysts.

Technical and Market Indicators

The stock’s position below its 5-day through 200-day moving averages indicates a bearish trend in the short to long term. This technical weakness is compounded by the broader market’s negative sentiment on the day, with the Sensex also retreating.

Indices such as NIFTY REALTY also hit new 52-week lows on the same day, suggesting sectoral or market-wide pressures that may be influencing investor behaviour.

Conclusion

Som Distilleries & Breweries Ltd’s fall to a 52-week low of Rs.90.2 on 23 Jan 2026 reflects a complex interplay of financial metrics, market sentiment, and technical factors. Despite solid growth in sales and profits, the stock’s elevated interest costs and lower coverage ratios have weighed on its performance relative to the broader market and sector peers.

Investors and analysts will continue to monitor the company’s financial health and market positioning as it navigates these challenges.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →