1. At a Glance
Som Distilleries is that party guest who never leaves — founded in 1993, still pouring beer and IMFL, still expanding brands. Flagship of the Bhopal-based SOM Group, it has built a ₹2,882 Cr market cap on the back of a 45% 5-year profit CAGR. TTM revenue? ₹1,443 Cr. OPM? Steady at 12%. P/E? A frothy 30x. Latest move: launching Mahavat Whisky in Delhi to tap the mid-premium segment. Debt isn’t light, dividends don’t flow, but growth has been intoxicating — literally.
2. Introduction
Som Distilleries started as a regional beer & liquor maker and has grown into a pan-India player, blending brand creation with contract bottling. Today, it brews beer, blends IMFL, and sells across multiple states.
Its growth acceleration in the last 3 years is partly due to premiumisation — shifting towards higher-margin products and branding — and aggressive capacity utilisation. However, in a business where excise rules can change faster than bar closing hours, execution agility is key.
3. Business Model (WTF Do They Even Do?)
- Beer Brewing: Core product range includes Hunter, Black Fort, Woodpecker, and now Mahavat Whisky entering spirits.
- IMFL Blending & Bottling: For both in-house brands and third parties.
- Distribution: Mix of state-owned liquor corporations, distributors, and retail tie-ups.
- Geography: Primarily North
- & Central India, expanding in premium segments.
It’s capital intensive, regulation heavy, and competitive — but margins improve with premiumisation and scale.
4. Financials Overview
Fresh P/E Calculation:
- FY25 EPS: ₹4.91
- Q4 FY25 EPS (Mar ’25): ₹0.97
- Q1 FY26 EPS (Jun ’25): ₹1.16
- TTM EPS = (₹4.91 – ₹0.97) + ₹1.16 = ₹5.10
- CMP ₹148 → Fresh P/E ≈ 29.0
FY25 Snapshot:
| Metric | FY25 | YoY Change |
|---|---|---|
| Revenue | ₹1,443 Cr | +13% |
| EBITDA | ₹176 Cr | +18% |
| PAT | ₹104 Cr | +21% |
| OPM | 12% | Flat |
| ROCE | 18% | Flat |
Commentary:
Revenue growth slowed to 13% from the prior 3-year average of 58%, hinting the big expansion phase may be cooling. Margins have stabilised at 12% OPM — respectable for alcohol manufacturing in India but well below United Spirits’ 18%.
5. Valuation
Method 1 – P/E Multiple:
- Industry median ≈ 34x
- Apply 15% discount for mid-cap size: FV P/E ≈ 29x
- FV = ₹5.10 × 29 ≈ ₹148 (right
