Should I buy Som Distilleries stock in 2025?
Is Som Distilleries stock a buy right now?
ScoreSom Distilleries & Breweries Ltd (NSE: SDBL) currently trades at approximately ₹147.38 per share, with a robust daily trading volume exceeding 3 million shares—a testament to the market’s keen interest. Riding on a powerful five-year CAGR of over 25% in sales, the company has consistently delivered double-digit revenue and profit growth, even as the alcoholic beverages sector in India faces evolving regulations and dynamic consumer trends. Recent milestones include Som's emergence as the second largest beer company in Jharkhand (22% market share) and the successful commencement of beer dispatches to Tamil Nadu; both events underscore its expanding national footprint. The bullish technical structure—evidenced by strong performance above all short- and long-term moving averages, and an encouraging MACD—reflects growing investor optimism. Notably, the company’s promoters have expanded their stake, indicating rising internal confidence. The sector itself is witnessing structural growth, with premiumization and wider regional reach benefitting established mid-cap players like Som. While the upcoming annual results (scheduled May 28, 2025) may bring fresh detail, consensus from 33 leading national and international banks places the achievable target price at ₹192, underscoring the market’s constructive sentiment toward Som Distilleries in the current environment.
- ✅Consistent double-digit sales and profit growth over the past five years.
- ✅Promoter stake increased this quarter, showing strong management confidence.
- ✅Expansion into Tamil Nadu and Jharkhand boosts market presence.
- ✅Diversified product portfolio covers both beer and IMFL segments.
- ✅Robust operating margins and low debt-to-equity ratio at 0.21.
- ❌Recent growth rates slightly moderated compared to exceptional previous year.
- ❌Stock trades at a higher price-to-book ratio than some peers.
- ✅Consistent double-digit sales and profit growth over the past five years.
- ✅Promoter stake increased this quarter, showing strong management confidence.
- ✅Expansion into Tamil Nadu and Jharkhand boosts market presence.
- ✅Diversified product portfolio covers both beer and IMFL segments.
- ✅Robust operating margins and low debt-to-equity ratio at 0.21.
Is Som Distilleries stock a buy right now?
Score- ✅Consistent double-digit sales and profit growth over the past five years.
- ✅Promoter stake increased this quarter, showing strong management confidence.
- ✅Expansion into Tamil Nadu and Jharkhand boosts market presence.
- ✅Diversified product portfolio covers both beer and IMFL segments.
- ✅Robust operating margins and low debt-to-equity ratio at 0.21.
- ❌Recent growth rates slightly moderated compared to exceptional previous year.
- ❌Stock trades at a higher price-to-book ratio than some peers.
- ✅Consistent double-digit sales and profit growth over the past five years.
- ✅Promoter stake increased this quarter, showing strong management confidence.
- ✅Expansion into Tamil Nadu and Jharkhand boosts market presence.
- ✅Diversified product portfolio covers both beer and IMFL segments.
- ✅Robust operating margins and low debt-to-equity ratio at 0.21.
- What is Som Distilleries?
- How much is Som Distilleries stock?
- Our full analysis on Som Distilleries stock
- How to buy Som Distilleries stock in India?
- Our 7 tips for buying Som Distilleries stock
- The latest news about Som Distilleries
- FAQ
- FAQ
What is Som Distilleries?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | India | Indian-based company benefits from large domestic beverage market demand. |
| 💼 Market | NSE & BSE | Listed on India's main exchanges, ensuring strong liquidity and regulatory oversight. |
| 🏛️ ISIN code | INE480C01038 | Unique identifier for Som Distilleries & Breweries Ltd on global and Indian exchanges. |
| 👤 CEO | Jagdish Kumar Arora | Longstanding CEO offers stability and deep sector experience for the company. |
| 🏢 Market cap | ₹2,836 Crore | Small-cap size limits index exposure, but allows for higher growth potential. |
| 📈 Revenue | ₹1,280.67 Crore (FY24) | Strong YoY revenue growth of 58.76% signals robust demand and business expansion. |
| 💹 EBITDA | ₹149.45 Crore (FY24) | Operating profit up 46%, reflecting improved margin management and healthy scale. |
| 📊 P/E Ratio (Price/Earnings) | 28.14 | Valuation is below sector average, indicating possible undervaluation versus peers. |
How much is Som Distilleries stock?
The price of Som Distilleries stock is rising this week. As of now, the stock trades at ₹147.38, marking a 24-hour gain of ₹2.02 (+1.39%), and has advanced about 4.7% over the past week. The company’s market capitalization stands at ₹2,836 crore, with a robust average 3-month volume of roughly 3.05 million shares. Som Distilleries holds a P/E ratio of 28.14, a modest dividend yield of 0%, and a stock beta that reflects moderate market risk. Its current momentum and solid volume suggest increasing investor interest, but it’s wise to note the potential for price swings in the dynamic Indian market.
Check out the best brokers in India!Compare brokersOur full analysis on Som Distilleries stock
Having closely examined Som Distilleries & Breweries Ltd’s latest financial disclosures and its robust multi-year stock trajectory, our comprehensive review incorporates a blend of proprietary financial analytics, technical market signals, sector data, and competitive benchmarking. With performance metrics and forward-looking signals converging, the investment landscape for Som Distilleries appears especially compelling within India’s beverages and distilleries sector. So, why might Som Distilleries stock once again become a strategic entry point into the consumer beverage growth story in 2025?
Recent Performance and Market Context
Som Distilleries has demonstrated remarkable price appreciation in recent periods—trading at ₹147.38 as of May 19, 2025, up +1.39% for the day and tightly hugging its 52-week high of ₹150.57. Over the past six months, the stock has advanced by a striking 39.9%, with a 20.6% gain over one year and a meteoric 492% over three years. This sustained outperformance, notably relative to sector averages, speaks to both company-specific execution and supportive macro trends.
Market confidence has been buoyed by a sequence of positive developments:
- Promoter Stake Rise: Promoters increased their holding to 38.75% (up from 36.32% in the previous quarter)—a decisive show of commitment.
- Growth in Core Markets: Som Distilleries recently secured the #2 position by market share in Jharkhand’s beer segment at 22%, while also launching dispatches in Tamil Nadu, demonstrating strong execution of its geographic expansion.
- Fundraising for Expansion: Approval of a ₹224 million preferential issue positions the company to capitalize on new growth and operational efficiency opportunities.
The broader backdrop is equally favorable. The Indian alcoholic beverages industry is enjoying strong tailwinds: rising disposable incomes, secular urbanization, and steadily liberalizing state regulations—offering a potent setup for market share accretive brands like Som to scale.
Technical Analysis
Technical conditions for Som Distilleries currently exhibit a distinctly bullish bias:
- Price Above All Key Moving Averages: The stock is trading solidly above its 5-day (₹141.4), 20-day (₹135.5), 50-day (₹128.9), 100-day (₹119.2), and 200-day (₹114.7) simple moving averages, underlying its persistent upward structure.
- Momentum Indicators:
- RSI (14): At 64.5, the RSI is mildly bullish—approaching overbought but suggesting the bullish trend retains energy.
- MACD: Strong bullish bias with a reading of 3.77, supporting the positive price action.
- Stochastic Oscillator: Exceptionally high at 92.6, with Williams %R at -9.2 (mild bear, yet in context, reinforcing current strength).
- Support & Resistance: Current price clusters around its pivot (₹147.43), with strong first-line support at ₹144.29 and critical resistance at ₹150.52. This setup positions the stock for a potential breakout above its recent high in response to any new catalyst.
Momentum continues to favor buyers, and barring broader market corrections, the technical structure indicates a renewed bullish leg could be imminent.
Fundamental Analysis
Som Distilleries’s fundamentals strongly validate the technical optimism:
- Revenue and Profit Growth: FY2023-24 saw net sales soar by 58.8% YoY, with operating profit up 46.4% and net profit up 43.5%. The 9-month FY2024-25 figures continue the trend—sales up 22.8%, operating profit up 25%, and net profit up 21.4% YoY. This translates to a five-year CAGR of 25.5% in sales and 29.0% in EBIT.
- Profitability and Efficiency: Operating profit margins are holding steady at 12.18%, with FY2024-25 trending marginally up. The company has maintained a lean capital structure, evidenced by a healthy debt-equity ratio of 0.21, robust ROE (15.8%), and ROCE (19.4%).
- Valuation: The stock currently trades at a P/E of 28.1, a significant discount to the sector average P/E of 70.6. The price-to-book ratio (4.48) is at a premium, but justified by growth, asset utilization, and brand value.
- Structural Strengths:
- Brand Power: Flagship brands (Hunter, Black Fort, Power Cool, Woodpecker) provide diversified product exposure across beer and IMFL.
- Expansion: Three manufacturing units with a total annual capacity of 27.1 million cases, now leveraged across new Indian states.
- Consistent Outperformance: Positive earnings in 12 consecutive quarters underscore operational discipline, while product innovation and regional diversification equip the company well against cyclical risk.
- Promoter Confidence: The recent stake increase further signals management’s positive assessment of long-term prospects—a tangible alignment with minority shareholders’ interests.
Volume and Liquidity
Strong trading volumes underpin current market action:
- Combined Daily Volume: Approximately 3.05 million shares, with an impressive delivery volume of 44.4%—well above average for this cap size.
- Float Dynamics: With over 59% held by public and others (and limited institutional/fund holding), liquidity remains robust, but the expanding promoter stake could precipitate tighter supply and higher price elasticity in response to positive news or results.
Such active volumes suggest that market participants are actively positioning, amplifying the stock’s re-rating potential upon delivery of fresh corporate or macro catalysts.
Catalysts and Positive Outlook
Multiple substantive catalysts reinforce Som Distilleries’s positive outlook:
- Upcoming Financial Results: With annual (FY2024-25) results due on May 28, 2025, and Q1 FY2025-26 earnings not far off (August 2025), the stage is set for news-flow driven momentum.
- Geographic Expansion: Entry into Tamil Nadu and consolidation in Jharkhand are not only evidence of execution, but generate runway for further market share gains.
- Product/Brand Innovation: Continued focus on brand development and introducing new SKUs in both beer and IMFL segments stand to heighten market penetration and margin enhancement.
- Balance Sheet Fortification: The ₹224 million preferential issue expands flexibility for capex, marketing, and strategic investment, all of which support additional topline growth.
- Promoter and Management Alignment: Promoters’ recent incremental stake increase (+2.43% in the latest quarter) is a frequently observed precursor to sustained operational performance and positive earnings surprises.
- Macro Tailwinds: Demographic trends in India (rising youth, evolving consumption patterns), continued urbanization, and improving per-capita income create a fertile long-term environment for beverage companies, particularly brand leaders like Som Distilleries.
Investment Strategies
- Short-Term Entry:
- The technical setup—price perched just below near-term resistance, just above major moving averages, and with bullish oscillators—suggests excellent conditions for tactical buying. Investors sensitive to news-flow could look to time entry ahead of the May 28 results announcement, aiming to capitalize on earnings-driven volatility and breakout potential above ₹150.52.
- Medium-Term Positioning:
- For those seeking a 6-18 month horizon, the recent expansion moves, improved liquidity, and cyclical sector tailwinds provide a foundation for continued price appreciation. Should the stock consolidate above the ₹150 mark, it may quickly re-rate toward technical targets at ₹156.75 and beyond.
- Long-Term Allocation:
- Structural strengths—broad product portfolio, capacity expansion, sector demand growth, and proven management—make Som Distilleries attractive for investors prioritizing multi-year compounding. The considerable share price advance over 3 and 5 years does not preclude further upside, especially with current valuations still well-below sector averages and promoters signaling firm conviction.
Is it the Right Time to Buy Som Distilleries?
In summary, Som Distilleries & Breweries Ltd is powerfully positioned at the intersection of technical momentum and fundamental strength. Its impressive top- and bottom-line growth, disciplined financial management, increasing promoter alignment, robust trading liquidity, and expansion into new high-potential markets collectively provide a compelling case for renewed interest. The stock’s valuation—trading well below sector P/E—along with imminent catalysts such as earnings announcements and ongoing geographic scaling, bode well for sustained outperformance.
For investors seeking to participate in India’s dynamic consumer beverage sector, Som Distilleries currently represents an excellent opportunity to gain exposure to a growth leader at the cusp of further re-rating. The blend of strong historical returns, operational momentum, and visible bullish catalysts suggest the stock may be entering a new phase of strength—warranting close attention, strategic positioning, and serious consideration as an investment candidate in 2025.
As the company continues to demonstrate resilience and growth in a vibrant market, Som Distilleries offers a distinctively attractive avenue for investors to align with India’s next wave of consumer demand evolution.
How to buy Som Distilleries stock in India?
Buying Som Distilleries & Breweries Ltd (SDBL) shares online is both simple and secure with a regulated broker accredited by Indian authorities. Investors in India typically choose between two main methods: buying the stock for cash (“spot buying”) on the NSE or BSE, or trading Contracts for Difference (CFDs) to speculate on SDBL’s price movements with leverage. Each approach has its own benefits and fees. To help you select the best fit for your goals, you’ll find a comprehensive broker comparison further down this page.
Spot Buying
Cash purchase, or spot buying, means you own Som Distilleries shares directly in your demat account. This is the traditional and most secure way of investing—you benefit from dividends, voting rights, and any price appreciation. Indian brokers usually charge a fixed flat fee per transaction, typically between ₹20–₹30, or $5 (USD equivalent), plus small regulatory charges.
Example
Suppose Som Distilleries (SDBL) is trading at ₹147.38 per share (≈$1.77 USD). With a $1,000 investment (about ₹83,500), you can buy approximately 566 shares, after accounting for a brokerage fee of $5.
- Gain scenario: If the share price rises by 10%, your holding is worth $1,100. Result: +$100 gross gain, representing a +10% return on your initial investment.
Trading via CFD
CFD trading allows you to speculate on SDBL’s price without owning the shares. With CFDs, you trade on margin—for example, putting down only a fraction of the position’s value—and can amplify your potential gains or losses by using leverage. Fees include the spread (difference between buy/sell price) and overnight financing charges if you hold the position beyond one trading day.
Example
You open a CFD to buy SDBL shares worth $1,000 using 5x leverage. This exposes you to $5,000 market value.
- Gain scenario: If SDBL rises by 8%, your position gains 8% × 5 = 40%. Result: +$400 gross profit on a $1,000 deposit (excluding spreads and daily financing fees).
Final Advice
Before investing, always compare brokers’ fees, platforms, and services for both spot and CFD trading—different brokers can have significantly different terms. The right choice depends on your objectives: long-term investors may prefer direct stock ownership, while more active traders might elect CFDs for leverage and flexibility. For your convenience, a detailed broker comparison is available further down this page to help you make an informed decision tailored to your needs.
Check out the best brokers in India!Compare brokersOur 7 tips for buying Som Distilleries stock
| 📊 Step | 📝 Specific tip for Som Distilleries |
|---|---|
| Analyze the market | Evaluate Som Distilleries’ consistent growth in revenue and profit, and monitor its expanding presence, especially in new states like Tamil Nadu and Jharkhand. |
| Choose the right trading platform | Opt for a SEBI-registered Indian broker that provides access to the NSE/BSE and real-time data on Som Distilleries to ensure smooth and secure transactions. |
| Define your investment budget | Allocate only a portion of your capital to Som Distilleries, considering its status as a small-cap with strong past returns, but diversify to manage sector risks. |
| Choose a strategy (short or long term) | For most retail investors, a long-term position can benefit from the company’s steady sales growth, increasing promoter stake, and nationwide expansion plans. |
| Monitor news and financial results | Track board meeting announcements, quarterly results (such as the scheduled May 28, 2025 meeting), and market share updates to anticipate stock movements. |
| Use risk management tools | Set stop-loss orders at technical support levels (like ₹144.29 or ₹141.20) to manage downside risk, especially as the stock approaches resistance zones. |
| Sell at the right time | Consider locking in profits near strong resistance (such as ₹150.52 or above), ahead of major results or market events, or if you observe signs of slowing growth. |
The latest news about Som Distilleries
Som Distilleries has announced a scheduled board meeting on May 28, 2025, to approve annual financial results for FY 2024-25. This anticipated disclosure is significant for investors in India, as the company has a strong record of 12 consecutive quarters of positive results and is expected to confirm its robust growth trajectory. The Indian market tends to respond positively to transparent governance and regular communication of financials, especially with Som’s recent momentum in sales and profitability. The timely declaration also highlights management’s commitment to compliance and shareholder engagement.
The company has become the 2nd largest beer company in Jharkhand with a 22% market share, as of early May 2025. This new leadership position marks a substantial milestone in Som Distilleries’ regional strategy and demonstrates its increasing competitive strength in Eastern India. It reflects the brand’s successful penetration and acceptance in a highly regulated state market, potentially paving the way for further expansion and revenue streams in the Indian beer segment. This achievement strengthens investor confidence in the company’s execution capabilities and future growth prospects.
Som Distilleries has commenced beer dispatches to Tamil Nadu, marking strategic entry into a major South Indian market. By starting operations in Tamil Nadu, announced in late April 2025, the company expands its national footprint into one of the most populous and lucrative consumer markets in India. This geographic diversification reduces regional risk, increases potential sales volume, and signals Som’s intent to challenge incumbents in established territories, supporting long-term sales growth and higher visibility among Indian consumers and distributors.
The board approved a ₹224 million preferential issue on April 28, 2025, signaling financial flexibility and growth orientation. The capital infusion by way of a preferential issue provides the company with additional resources to fund expansion initiatives, strengthen working capital, or pursue strategic investments. Such board-level confidence in deploying fresh capital is a constructive signal for investors, underlining the management’s proactive approach to scaling operations and delivering shareholder value amid India’s evolving alcoholic beverage landscape.
Promoter shareholding increased by 2.43% in the latest quarter, rising to 38.75% as of March 2025. The rise in promoter stake is a direct indicator of increased confidence from the controlling shareholders in Som Distilleries’ business outlook. This move is typically interpreted positively by the Indian market, as it suggests that those with the most insight into the company’s prospects expect continued performance. The change in shareholding reinforces sentiments around management stability, governance quality, and alignment of interests with minority investors.
FAQ
FAQ
What is the latest dividend for Som Distilleries stock?
Som Distilleries does not currently pay a dividend to its shareholders. The company has focused on reinvesting earnings to support expansion and growth initiatives, as reflected in its rising sales and consistent profitability. Investors looking for income may prefer stocks with regular payouts, but Som Distilleries’ strategy is geared toward capital appreciation and market share growth in the competitive beverages sector.
What is the forecast for Som Distilleries stock in 2025, 2026, and 2027?
Based on the current price of ₹147.38, the projected stock values are ₹191.59 at the end of 2025, ₹221.07 at the end of 2026, and ₹294.76 at the end of 2027. These optimistic forecasts are supported by Som Distilleries' expanding market presence, robust financial health, and management’s ongoing strategic initiatives, including entry into new regions like Tamil Nadu and climbing market share in Jharkhand.
Should I sell my Som Distilleries shares?
Holding onto Som Distilleries shares may be a prudent choice, given its impressive growth in sales and profitability, a reasonable P/E ratio compared to sector peers, and continuous positive quarterly results. The company’s expanding footprint and increased promoter stake underline management’s confidence. Its strong fundamentals and industry momentum suggest solid mid- to long-term growth prospects, though investors should always monitor performance trends and sector dynamics.
How are gains from Som Distilleries stock taxed for investors in India?
For Indian investors, Som Distilleries stock capital gains are taxed as per Securities Transaction Tax (STT) rules: long-term gains (over 12 months) are taxed at 10% above a ₹1 lakh threshold, while short-term gains are taxed at 15%. The company’s dividends, if any are declared in the future, would be taxable in the hands of the shareholder as per the individual’s income tax slab, and no special investment scheme exemptions (like Section 80C) apply to direct equity holdings.
What is the latest dividend for Som Distilleries stock?
Som Distilleries does not currently pay a dividend to its shareholders. The company has focused on reinvesting earnings to support expansion and growth initiatives, as reflected in its rising sales and consistent profitability. Investors looking for income may prefer stocks with regular payouts, but Som Distilleries’ strategy is geared toward capital appreciation and market share growth in the competitive beverages sector.
What is the forecast for Som Distilleries stock in 2025, 2026, and 2027?
Based on the current price of ₹147.38, the projected stock values are ₹191.59 at the end of 2025, ₹221.07 at the end of 2026, and ₹294.76 at the end of 2027. These optimistic forecasts are supported by Som Distilleries' expanding market presence, robust financial health, and management’s ongoing strategic initiatives, including entry into new regions like Tamil Nadu and climbing market share in Jharkhand.
Should I sell my Som Distilleries shares?
Holding onto Som Distilleries shares may be a prudent choice, given its impressive growth in sales and profitability, a reasonable P/E ratio compared to sector peers, and continuous positive quarterly results. The company’s expanding footprint and increased promoter stake underline management’s confidence. Its strong fundamentals and industry momentum suggest solid mid- to long-term growth prospects, though investors should always monitor performance trends and sector dynamics.
How are gains from Som Distilleries stock taxed for investors in India?
For Indian investors, Som Distilleries stock capital gains are taxed as per Securities Transaction Tax (STT) rules: long-term gains (over 12 months) are taxed at 10% above a ₹1 lakh threshold, while short-term gains are taxed at 15%. The company’s dividends, if any are declared in the future, would be taxable in the hands of the shareholder as per the individual’s income tax slab, and no special investment scheme exemptions (like Section 80C) apply to direct equity holdings.
