Som Distilleries & Breweries, the flagship company of Som Group, has experienced a stellar surge in its share value. The stock has consistently moved upwards, starting from its February 2022 low of ₹35.20 to the current market price of ₹302, delivering a staggering return of nearly 758%. During this period, an investment of ₹1 lakh would have turned into over ₹8.5 lakh.
Notably, the company's shares have exhibited positive performance over the past four months, with May registering the highest monthly gain of 39%, closely followed by March with a rally of 34%.
After a prolonged period of decline from CY14 to CY19, 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 138.89% in the current year so far.
Further, the stock marked a new life-time high of ₹306.70, jumping 6% in value during Wednesday's trade.
The company is one of the leading alcoholic beverage manufacturers in India. It is primarily engaged in the production of beer and 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, its website shows.
According to the company's recent regulatory filing, its market share in the Odisha region has reached 18.4% as of mid-June 2023, making it the second-largest player in the state. In Karnataka, the company has experienced remarkable growth, achieving a historic market share of 20.1% in May 2023.
Additionally, the company's flagship strong beer, Hunter, emerged as the top-selling brand in the strong beer segment in Delhi for May 2023. In Madhya Pradesh, the company solidified its position as the industry leader, achieving a market share of nearly 42% in May 2023, surpassing all competitors.
Furthermore, the company announced the commencement of production by Carlsberg India at its state-of-the-art plant in Odisha. These positive advancements are some of the key factors behind the unprecedented rally in the company's shares over the last few months.
In terms of financial performance, the company delivered strong numbers across key metrics. In FY23, it achieved a net profit of ₹60 crore, marking a significant turnaround from the net losses of ₹10 crore and ₹38 crore in FY22 and FY21, respectively.
The company's revenue from operations in FY23 saw a remarkable increase of 122%, reaching ₹807 crore, driven by robust volume growth. Beer volumes grew by 118.9% to 149.6 lakh cases, while IMFL volumes increased by 55.5% to 8.9 lakh cases, resulting in an overall volume growth of 114.1% in FY23.
The operating profit jumped to ₹102 crore in FY23 from ₹17 crore in FY22, while EBITDA margin expanded to 13% in FY23, a significant increase of 700 basis points compared to 5% in FY22.
Furthermore, the company managed to improve its gross debt-to-equity ratio to 0.65x in FY23, demonstrating progress from the previous year's ratio of 0.68x.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
