Som Distilleries and Breweries Stock Research

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Som Distilleries and Breweries Detail

Som Distilleries and Breweries is in portfolio of Dolly Khanna. He is one of the top investors in India. The company belongs to Distillery sector.

As per the Company website it is into production of Beer, Whisky, Vodka, Rum, Gin, Ready To Drink beverages and Country Liquor. The group operates a brewery, a distillery, support industries and a distribution network across the country.

The Company has three millionaire brands namely Hunter, Blackfort and Power cool. It is an integrated AlcoBev player based out of Central India. The Company distributes products mainly in Central India, West India and some parts of South and East India. It does not have presence in North India and North East India except Delhi.

It exports products to export to Niger, Mozambique, Republic of Dominica, Dubai, Oman, Japan, South Korea, Singapore, Malaysia, Vietnam, Australia, New Zealand, Nigeria, Angola, Congo, Sudan, Tanzania, Uganda, Norway, Sweden, UK, Haiti, Panama, Zambia, Cambodia, UAE, Germany, Finland, Kenya and US.

Below are the manufacturing units along with capacity each one has

  • Som distilleries and breweries limited
    • Annual manufacturing capacity of 12.5 Million cases and an IMFL capacity of 1.7 million cases per annum
  • Som distilleries private limited
    • Bottling capacity of 7 million cases per annum
    • Producing 120 Kilo Litres of RS/ ENA per day
    • Have large land bank for future expansion and 3.2 MW captive power plant
  • Legend Distilleries private limited
    • Annual bottling capacity of 0.65 Million cases
    • Blending capacity of 0.8 Million cases per annum
  • Woodpecker Distilleries and Breweries limited
    • 500,000 Hecto litres per annum
    • The Company has huge expansion plans for this plant
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I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

Som Distilleries and Breweries Stock Performance

The stock got listed on exchanges in year 2005 at 6 INR price. It gave consistent returns after listing but major rerating happened in year 2011 when it started trading close to 200 giving exceptional returns to investors.

Since then in last eight years or so stock has been consolidating in 100 and 200 range. It has range bound movement most of the time. It did break out of 200 and touched 300 mark but that did not sustain for long.

The best part is downside was limited and stock never touched 100 mark. The dividend yield is also good and consistent.

Som Distilleries and Breweries My Opinion

Som Distilleries and Breweries is a Distellery Company. The ace investor Dolly Khanna has more than one Distillery stock in her portfolio. So it seems she is super bullish on this segment.

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Distillery is considered as one of the Sin sectors by Analysts. Many consider it as evergreen sector and rightly so. People will continue to consumer Liquor in near future as well. I do not think personally there will be drastic change in lifestyle to make it extinct from market or lower the demands.

State Government bans on Liquors and occasional protest after major accident like deaths due to Poisonous Liquor consumption will have adverse impact on stocks but this is temporary impacts.

There are not too many listed players in the market. You can compare them and create your own watchlist. You can also analyze stocks in portfolio of Dolly Khanna and get an idea. Personally I do not invest in Sin stocks. It is more of a personal resolution rather than any issues with sector or stocks in the sector.

In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.

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