The share price of this small-cap alcohol firm went down by 15 percent to an Intraday low of Rs 105 per share on Tuesday after the National Commission for Protection of Child Rights discovered over 50 children in its Madhya Pradesh facility.
With a market capitalization of Rs 2,417.36 crores, at 11:15 am. the shares of Som Distilleries and Breweries Ltd went down by 7.25 percent, trading at Rs 115 a piece on Tuesday’s morning session, Compared to today’s low of Rs 105.00 per share to a previous close of Rs 124.7 per share.
A case under juvenile justice and bonded labour laws was filed on Sunday on the Som Distilleries and Breweries Ltd after the National Commission for Protection of Child Rights discovered over 50 children working in a liquor factory in Madhya Pradesh’s Raisen district.
A First Information Report has been registered, and a notice has been issued to the state government to take action against the responsible excise officer, according to the report.
According to the company’s stock exchange filings, The company reported that issues are not directly related to Som Distilleries and Breweries Ltd., but rather to their associate company involved in the the country’s liquor business.
Further, the filings also mentions that Som distilleries wishes to state that labor for the associate company is supplied by contractors. Also, The company reports in its exchange filings that the contractors may not have properly verified the ages of the workers. Additionally, The associate company has fully cooperated with the authorities and has terminated the vendor’s services through the directors of the company.
According to the company’s exchange filing, in response to media reports about child labor issues, the company clarified that these concerns do not pertain to Som Distilleries and Breweries Limited. Instead, they relate to their associated private limited company primarily involved in country liquor, not the listed company mentioned in the reports.
Furthermore, the company clarified that labor for the associated company is provided by contractors. The issue may stem from these contractors failing to conduct proper age verification of the workers permitted to work there.
Reviewing the financials of Som distilleries from a year-on-year basis, the revenue from operations increased by 58.7 percent from Rs. 807 crores in FY22-23 to Rs 1,281 crores in FY23-24. While the net profits of the firm increased by 43.3 percent from Rs. 60 crores in FY22-23 to Rs 86 crores in FY23-24.
The company’s net debt has decreased by 22.70 percent from Rs 229 crores in March 31 2023 to Rs 177 cores in March 31 2024. For the year 2024, the gross debt/Equity was noted at 0.35 times while the Net debt/ Ebitda was at 0.79 times.
In Q4 FY24, the firm’s revenue mix showed that their product, Hunter, contributed 16.6 lakh units in sales, Blackfort accounted for 5.3 lakh units, and Power Cool reached 33.3 lakh units.
The shares of this company generated an overall return of 12 percent over the past one year. According to the latest shareholding pattern, Ace Investor Dolly Khanna holds 1.14% stake in the company.
As of March 2024, the firm’s shareholding pattern stood at 35.26 percent for promoters, 63.51 percent for the public, 0.77 percent for foreign institutional investors, and 0.45 percent for domestic institutional investors.
Incorporated in 1993, Som Distilleries & Breweries Ltd. is one of the leading alcoholic beverages manufacturers in India engaged in the manufacturing and sale of Beer and Indian Made Foreign Liquor (IMFL).
Written by Zahal
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