The shares of one of the leading alcoholic beverage manufacturers surged 13 percent to an intraday high of ₹ 250 per share on Thursday after the company board planned to consider a stock split next month.
At 12:55 p.m., Som Distilleries and Breweries Ltd shares were trading at ₹245.65 a share, up ₹24.90 or 11.28 percent from the previous close price on the exchange, and the company has a market capitalization of ₹1,903 crores.
According to the exchange filing, the company board of directors is scheduled to meet on Tuesday, April 2, 2024, to consider and approve the sub-division/split of existing equity shares of the company, with a face value of ₹5 per share each, fully paid.
Recently, the company has introduced a new strong beer “Legend” in the state of Karnataka. For consolidating the company’s market share in the high-alcohol beer segment.
As well, the company has entered into a strategic contract manufacturing agreement in Jammu and Kashmir for the production of IMFL, targeting the delivery of high-quality products to the Canteen Stores Department (CSD).
The company’s stock has gained 78 percent in a year and its shares have declined 23 percent in the last six months.
Som Distilleries & Breweries Ltd. is one of India’s leading alcoholic beverage manufacturers, producing beer and Indian-made foreign spirits. The company is primarily engaged in the production of beer and blending and bottling of IMFL
The company experienced a significant 78 percent yearly increase in revenue, surging from ₹149 crore in Q3FY23 to ₹266 crore in Q3FY24. In contrast, there was a 63 percent rise in net profit, climbing from ₹11 crore to ₹18 crore. Furthermore, the company achieved a compound annual growth rate (CAGR) of 20% in revenue from FY19 to FY23.
As per the recent shareholding pattern, the company’s promoters hold a 34.73 percent stake, while retail investors hold a 64.20 percent stake in the company.
With manufacturing facilities located in Karnataka, Odisha, and Bhopal, the company has attained significant market dominance, securing a 45% share of the beer industry in Madhya Pradesh as of October 2023.
During the first nine months of the fiscal year 2024, beer constituted 94% of total volumes and contributed to 91% of revenue. Notably, the company has managed to reduce its gross debt by ₹ 580 million, resulting in an overall decrease in consolidated debt, indicating an improved debt position.
Some of the common brands include Hunter Strong Premium Beer, Woodpecker Wheat Beer, Pentagon Gold Edition Whisky, Milestone Blue, Legend Premium Whisky, White Fox Vodka, and several others.
Written by Omkar Chitnis
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