Som Distilleries receives permission to expand beer capacity; shares rise 3%

Som Distilleries stock has risen 155.97 percent so far this year.

Shares of Som Distilleries gained 3.2 percent in trade on November 21 as the brewer received the relevant permissions to expand its beer capacity at its plant.

In a regulatory filing, Som Distilleries and Breweries said, “We have received the relevant permissions from the Excise Department towards the proposed expansion of the beer capacity at our Hassan plant.”

As of 2 pm, shares of the company were trading at Rs 301.8, higher by 2.3 percent from its previous closing price.

In a previous filing, the company noted that the capacity expansion will ensure that production rises by around 60 lakh cases every year in the Karnataka plant.

Earlier this month, insider data revealed that promoter and managing director Jagdish Kumar Arora bought 11,000 shares of the company at an average price of Rs 297 apiece. Arora’s holding in Som Distilleries now stands at 19.67 percent.

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The promoter’s stake purchase followed a week after the Income Tax department search on the premises of Som Group of companies across the country, including Bhopal, Jabalpur, and Indore on November 7.

For the quarter ended September, Som Distillery's consolidated total income surged 72 percent year-on-year (YoY) to Rs 464 crore from Rs 269 crore a year ago. However, on a sequential basis, the company's total income declined 38 percent from Rs 760 crore in Q1FY24. The company’s consolidated net profit, too, spiked 80 percent on-year to Rs 14 crore in Q2FY24.

So far in 2023, shares of Som Distilleries have more than doubled investors’ wealth, rising 155.97 percent. On the other hand, the benchmark index Nifty 50 has risen around 8 percent during the same period.

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