Shares of a brewery notched 9.3 percent gains on Tuesday’s early trades to reach a record high of ₹ 365.00 apiece on the National Stock Exchange (NSE) after it reported robust results for the first quarter of the financial year 2023-24 (June quarter). At 12:20 PM, its shares were trading at ₹ 337.80 apiece.
Som Distilleries & Breweries informed the bourses that its profit increased by 31.27 percent to ₹ 33.67 crores in the June quarter (Q1FY24), as compared to ₹ 25.65 crores in the corresponding quarter of the previous year (Q1FY23). Its revenue escalated 73.33 percent to ₹ 758.63 crores in the latest quarter as compared to ₹ 437.68 crores in the same quarter last year.
Ace investor Dolly Khanna holds 10,15,429 shares or a 1.31 percent stake in the company as per the latest shareholding pattern of the company.
Som Distilleries & Breweries is among the leading alcoholic beverages manufacturers in India engaged in the manufacturing and sale of Beer and Indian Made Foreign Liquor (IMFL). Its popular brands include Hunter, Black Fort, and Power Coo. The company has a PAN India presence and exports its products to more than 24 countries across the world.
The company’s share price increased from ₹ 93.41 to ₹ 365.00 apiece, delivering multibagger returns of 290.75 percent in a span of one year. Thus an investment of ₹ 1 lakh in the company’s shares a year ago would be worth ₹ 3.90 lakhs today! The massive surge in its share price came amid several strategic initiatives and a customer-centric approach.
With a market capitalization of ₹ 2,580 crores, Som Distilleries & Breweries is a small-cap company. It has an ideal return on equity of 18.14 percent and an ideal debt-to-equity ratio of 0.0.65. Its shares were trading at a price-to-earnings ratio (P/E) of 39.40, which is slightly higher than the industry P/E of 39.40 indicating that the stock might be overvalued as compared to its peers.
Retail investors hold a 64.45 percent stake in the company followed by promoters with 34.47 percent and foreign institutions with 1.08 percent.
Written by Simran Bafna
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