Shares of Som Distilleries & Breweries, the flagship company of Som Group, kicked off Tuesday's trade strongly after the company delivered robust numbers for the June ending quarter. The company posted another strong performance in Q1, with its net profit growing 31% YoY to ₹33.67 crore. In the same quarter of the last fiscal year, the company recorded a net profit of ₹25.66 crore.
The revenue from operations rose 51% to ₹386.62 crore from ₹259 crore in Q1FY23. The firm's EBITDA grew by 40% to ₹50.14 crore during the quarter from ₹35.89 crore in the year-ago period. The EBITDA margin came in flat on a YoY basis, but it showed an increase of 200 basis points QoQ, reaching 13%.
During the quarter, the company's EPS rose to ₹4.36 from ₹3.50 in the corresponding quarter of last year.
The company's share price has responded positively to the earnings, with the stock gaining nearly 9.3% in trade to record a new historic high of ₹365 apiece. However, the stock failed to hold initial gains and is now trading at ₹338.45, up 1.36%.
From its February 2022 low of ₹35.20, the stock has delivered a staggering return of 868% to date.
After a prolonged period of decline from CY14 to CY20, resulting in a 71% loss of investors' wealth, the stock made a strong comeback. It delivered a solid return of 27% in CY21, followed by an outstanding gain of 204% in the subsequent year and a further increase of 176.23% in the current year so far.
Remarkably, over the last five months, the stock has consistently witnessed gains, with May standing out as the highest monthly performer with an impressive rally of 39%, closely followed by March, which recorded a remarkable gain of 34%.
SOM Distilleries & Breweries is one of the leading alcoholic beverage manufacturers in India. It is primarily engaged in the production of beer and the blending and bottling of Indian-made foreign liquor (IMFL).
It has three key millionaire brands (sales of more than 1 million cases per year) that include Hunter, Black Fort, and Power Coo. Apart from having a PAN India presence, the company has a global presence and exports its products to more than 24 countries across the world, as its website shows.
According to the company's recent regulatory filing, its market share in Madhya Pradesh has increased to 46% in June 2023, a remarkable increase from the reported 42% market share in May 2023.
The substantial surge in market share comes as a result of several strategic initiatives, relentless efforts, and a customer-centric approach. The company’s ability to adapt to evolving consumer preferences and cater to the unique taste preferences of the people of Madhya Pradesh has played a crucial role in this exceptional achievement, the company said in a regulatory filing.
Moreover, the company received approval from the Rajasthan government for beer supply. Rajasthan is one of the top five states in the country in terms of consumption.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.