Som Distilleries & Breweries Ltd Falls to 52-Week Low of Rs.94.75

Recent Price Movement and Market Context

On 20 Jan 2026, Som Distilleries & Breweries Ltd recorded its lowest price in the past year at Rs.94.75, underperforming its sector peers despite a marginal outperformance of 0.37% relative to the beverages sector on the day. The stock’s decline contrasts with the broader market’s mixed performance, as the Sensex opened flat but eventually fell by 277.70 points, or 0.38%, closing at 82,929.68. The benchmark index remains 3.89% below its 52-week high of 86,159.02, and has experienced a three-week consecutive fall, losing 3.3% in that span.

Som Distilleries & Breweries Ltd’s share price has declined by 13.57% over the last year, significantly lagging the Sensex’s positive return of 7.60% and the BSE500’s 6.26% gain. The stock’s 52-week high was Rs.173.15, indicating a substantial retracement from its peak levels.

Technical Indicators and Trading Trends

The stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a sustained bearish trend. This technical positioning suggests that short-term and long-term momentum remain subdued. The five-day consecutive decline and the 5.0% loss over this period highlight the stock’s vulnerability amid current market conditions.

Financial Metrics and Valuation Insights

Som Distilleries & Breweries Ltd’s financial profile presents a mixed picture. The company’s net sales have grown at a robust annual rate of 37.49%, while operating profit has expanded even more strongly at 60.19%. Despite these healthy growth rates, the stock’s valuation metrics and profitability ratios have raised concerns among market participants.

The company’s Return on Capital Employed (ROCE) for the half-year stands at 15.79%, which, while positive, is considered the lowest in recent periods. The operating profit to interest coverage ratio for the quarter is 8.17 times, indicating adequate but not excessive buffer to service debt obligations. Interest expenses have increased significantly, with the latest six-month interest cost at Rs.9.85 crores, growing by 85.15% compared to previous periods.

Valuation metrics show the stock trading at an enterprise value to capital employed ratio of 2.1, which is viewed as very attractive relative to peers. However, the PEG ratio of 2.7 suggests that the stock’s price appreciation has not kept pace with earnings growth, reflecting market caution.

Market Performance and Peer Comparison

Over the past year, Som Distilleries & Breweries Ltd has underperformed not only the Sensex but also its sector and broader market indices. While the BSE500 index has generated returns of 6.26% in the same period, the stock has declined by 13.57%. This divergence highlights challenges in market sentiment towards the company despite its operational growth.

The beverages sector has generally maintained steady performance, but Som Distilleries & Breweries Ltd’s share price has not reflected the sector’s relative stability. The company’s Mojo Score currently stands at 31.0, with a Mojo Grade of Sell, downgraded from Hold on 6 Nov 2025. This rating change reflects a reassessment of the company’s risk and return profile based on recent financial and market developments.

Liquidity and Capital Structure Considerations

Interest costs have risen sharply, with the latest six-month figure at Rs.9.85 crores, an increase of 85.15%. This rise in financing expenses has impacted profitability margins and may weigh on cash flow generation. The operating profit to interest coverage ratio of 8.17 times remains comfortable but is the lowest recorded in recent quarters, signalling a need for close monitoring of debt servicing capacity.

Despite these pressures, the company’s net sales and operating profit growth rates remain healthy, suggesting that revenue generation and core business activities continue to expand. The valuation discount relative to peers indicates that the market is pricing in these financial headwinds.

Summary of Key Metrics

To summarise, Som Distilleries & Breweries Ltd’s stock has reached a 52-week low of Rs.94.75 after a sustained period of decline. The stock’s performance over the last year has been negative at -13.57%, contrasting with positive returns from the Sensex and broader market indices. The company’s financial indicators show strong sales and profit growth but are tempered by rising interest costs and a lower ROCE compared to previous periods.

The stock’s current valuation metrics, including a low enterprise value to capital employed ratio, suggest it is trading at a discount relative to peers. However, the Mojo Grade downgrade to Sell and the stock’s technical positioning below all major moving averages reflect ongoing market caution.

Overall, the price action and financial data indicate that Som Distilleries & Breweries Ltd is navigating a challenging phase, with the 52-week low underscoring the market’s current assessment of its risk and reward profile.

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