Som Distilleries and Breweries has informed the bourses that they have entered into a contract manufacturing arrangement with Radico Khaitan Limited for the manufacturing of their IMFL (Indian Made Foreign Liquor) and Ready to Drink brands at their plant at Hassan, Karnataka. They added that it will lead to better utilization of their IMFL facility.
The company is a leading alcoholic beverages manufacturer in India and it is engaged in the manufacturing and sale of Beer and IMFL. Some of its most famous brands are Hunter Beer, White Fox, Woodpecker, Power Cool and Pentagon gold.
Similarly, Radico Khaitan is one of the oldest and largest manufacturers of IMFL with a strong portfolio of brands like 8 PM Whisky, Contessa Rum, Old Admiral Brandy and Magic Moments Vodka.
The share price of Som Distilleries and Breweries is at ₹ 121.15 apiece, up 1.55%. The company has nearly tripled investors’ money by giving multibagger returns of 199.63% as per year-to-date data. Therefore, if an investor would have invested ₹ 1 lakh in the shares of the company a year ago, the value of their holdings would have been ₹ 2.99 lakhs today!
Som Distilleries and Breweries reported a consolidated net profit of ₹ 25.66 crores in the June quarter of 2022 as against a net loss of ₹ 12.61 crores for the same quarter in the previous year. It is a small-cap company with a market capitalization of ₹ 835 crores. It has a dividend yield of 1.56% and an ideal debt-to-equity ratio of 0.63. Further, its shares are trading at a price-to-equity ratio of 29.55, which is slightly lower than the industry PE of 33.79.
Written by Simran Bafna
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