Hunter Beer’s maker Som Distilleries And Breweries’ shares were in focus as ace investor Dolly Khanna bought a stake in the company. Its shares closed at ₹ 150.65 apiece on Thursday.
Dolly Khanna is known for buying the shares of lesser-known small-cap and mid-cap companies. Her portfolio is managed by her husband Rajiv Khanna and is inclined towards the manufacturing, textile, chemicals, and sugar sectors.
According to the latest shareholding pattern of Som Distilleries, Dolly Khanna has bought a 1.29% stake in the company. In other words, she has bought 9,53,603 shares and her holdings are worth ₹ 14.36 crores as of Thursday.
The company’s shares have given multibagger returns of 142.79% in the past year as its share price rallied from ₹ 62.05 to ₹ 150.65 apiece. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 2.42 lakhs today!
In another development, the company has fixed Friday, April 14, 2023, as the record date for determining the names of shareholders of the company who are eligible to apply for equity shares in the rights issue of the company. The company will be issuing 34,95,952 equity shares of the face value of ₹ 5 each at an issue price of ₹ 140, including a premium of ₹ 135 per share.
Som Distilleries And Breweries is a leading alcoholic beverage manufacturer in India, that primarily manufactures and sells beer and Indian Made Foreign Liquor (IMFL).
With a market capitalization of ₹ 1152 crores, Som Distilleries And Breweries is a small-cap company. It has a negative return on equity of 3.44%, but an ideal debt-to-equity ratio of 0.53 and a dividend yield of 1.56%. Its shares were trading at a price-to-earnings ratio of 21.52 which is significantly lower than the industry average of 34.93, indicating that the stock might be undervalued as compared to its peers.
Written by Simran Bafna
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