Som Distilleries & Breweries Limited

Consumer Defensive — Beverages - Brewers · NSE

₹73.00−₹2.20 (−2.93%)

DalalBaazaar Score

36 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Som Distilleries & Breweries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Som Distilleries & Breweries Limited manufactures and sells beer and Indian made foreign liquor in India and internationally.

IndustryBeverages - Brewers

SectorConsumer Defensive

Employees460

Annual revenue₹1,188 Cr

How does it make money?

Turns over ₹1,188 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 460 employees supports ₹2.58 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.58 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 4.3% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE51.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +49% while net margin moved -88% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+49%

Margin effect-88%

DalalBaazaar Score

36/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ ROE of 1.3% is weak
✗ ROE has fallen by 14.7 points over the period

Quality vs. Valuation

Company Quality

36/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

31/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

19.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 15% over 3 years.
Very low debt
Debt/Equity of 0.26x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 16.1% to 1.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 14.3% to 4.3% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.4 points, from 12.8% to 7.4%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 16.1x to 2.1x.
🟡Profit is decliningFinancial
Net profit is down 83% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 12.8% to 7.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 16.1% to 1.3%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 11% a year✓ 14.2% CAGR
Latest reported year was -49.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 7.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹125 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.1x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 3 neutral · 7 weak

Market Cap

₹1,518 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

1.93x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-1.5

Loss-making

Negative earnings per share — the business is losing money

ROE

1.3%

Weak

Weak capital efficiency

ROCE

4.3%

Weak

Low return on total capital employed

Debt/Equity

0.26x

Low

Conservative leverage

Revenue Growth (YoY)

-49.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

-96.0%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹125 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

12.5x

Operating Margin

2.5%

Weak

Thin margins leave little room for error

Net Margin

-3.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.06

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.45

Defensive

Steadier than the market

52W Range Position

15%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

72.6 / 72.5

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

48.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹798 Cr	₹1,254 Cr	₹1,403 Cr	₹1,188 Cr	+14.2%
EBITDA	₹102 Cr	₹153 Cr	₹181 Cr	₹88 Cr	-4.8%
EBITDA Margin	12.8%	12.2%	12.9%	7.4%	—
PAT (Net Profit)	₹60 Cr	₹86 Cr	₹104 Cr	₹10 Cr	-44.4%
EPS	₹3.35	₹4.48	₹5.28	₹0.49	-47.3%
ROE	16.1%	15.4%	14.0%	1.3%	—
ROCE	14.3%	17.8%	17.2%	4.3%	—
Total Debt	₹249 Cr	₹197 Cr	₹171 Cr	₹212 Cr	-5.2%
Free Cash Flow	-₹85 Cr	-₹33 Cr	-₹58 Cr	-₹125 Cr	—

🟢 Revenue has grown at 14.2% a year over 3 years.

🔴 EBITDA has shrunk at 4.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 12.8% to 7.4% over 3 years (-5.4 pts).

🔴 PAT (Net Profit) has shrunk at 44.4% a year over 3 years.

🔴 EPS has shrunk at 47.3% a year over 3 years.

🔴 ROE has fallen from 16.1% to 1.3% over 3 years (-14.7 pts).

🔴 ROCE has fallen from 14.3% to 4.3% over 3 years (-9.9 pts).

🟢 Total Debt has shrunk at 5.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,465 Cr

Total Liabilities

₹646 Cr

Cash & Equivalents

₹17 Cr

Operating Cash Flow

₹191 Cr

Capex

-₹316 Cr

Shareholding (proxy)

Institutional Holding

0.1%

Insider Holding

55.4%

Corporate Actions

Ex-Dividend Date

02 Dec 2022

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

3 mixed3 general

Som Distilleries & Brew Share Price - Live NSE: SDBL Stock Price & Chart

Upstox, 16 Oct

Som Distilleries & Breweries Share Price Forecast to 2030

Univest, 29 Jul

SDBL Forecast — Price Target — Prediction for 2027

TradingView, 29 SeptAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Why is Som Distilleries stock rising today? Ace investor Prashant Jain-backed liquor share jumps 7% on this key update

Livemint, 28 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Som Distilleries shares jump 14% as ace investor Prashant Jain buys 25 lakh shares in Q1. What is he seein

The Economic Times, 20 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Som Distilleries files revised AGM notice with NSE and BSE

scanx.trade, 25 Sept

Watch Items

Revenue growth is negative (-49.3%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial Health

WeakBusiness Quality · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑