Som Distilleries & Breweries Ltd. (SDBL) AI Stock Analysis

• Market Cap: ₹14.09B
• Dividend Yield: N/A
• Average Volume (3M): 74.11K
• Price to Earnings (P/E): 121.4
• Beta (1Y): 1.39
• Revenue Growth: -0.87%
• EPS Growth: 10.87%
• Country: IN
• Employees: 494
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Alcoholic
• EPS (TTM): 0.24
• Shares Outstanding: 197,276,300
• 10 Day Avg. Volume: 64,138
• 30 Day Avg. Volume: 74,109
• PEG Ratio: 1.22
• Price to Book (P/B): 3.00
• Price to Sales (P/S): 1.55
• P/FCF Ratio: -38.44
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹77.00 ▼(-29.65% Downside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by strong financial performance (improving profitability and stable balance sheet), partially offset by weaker cash-flow quality. Technicals materially reduce the score due to a pronounced downtrend and negative momentum. Valuation is moderate based on the provided P/E, with no dividend support reflected.

Positive Factors

Improving profitability and margins

A multi-year turnaround to positive net margins signals durable improvements in cost control and pricing power. Sustainable margins increase internal cash generation, support reinvestment in brands and distribution, and reduce reliance on external funding over the medium term.

Stable balance sheet with solid equity base

An improving equity position and a strong asset base provide a financial cushion against industry cyclicality and regulatory shifts. This equity funding reduces solvency risk, helps absorb shocks, and preserves capacity for strategic capex or M&A without immediate dilution.

Operating cash generation

Positive operating cash flow relative to net income shows core operations are producing cash, supporting working capital and routine capex. Over months this underpins operational resilience and the ability to service obligations even if free cash flow is intermittently weak.

Negative Factors

Weak free cash flow

Recurring negative free cash flow constrains the firm's capacity to fund growth, repay debt, or return capital to shareholders without external financing. Over a 2–6 month horizon, this elevates refinancing and liquidity risk, particularly if capex or working capital needs persist.

Recent revenue decline

Negative reported revenue growth indicates pressure on top-line scale, which can erode operating leverage and limit margin sustainability. If the trend persists, the company may need to invest more in distribution or brands, pressuring cash and profitability over the medium term.

Meaningful total debt levels

Significant debt increases interest and refinancing exposure, especially when free cash flow is weak. Debt servicing can limit strategic flexibility, force prioritization of repayments over growth, and heighten vulnerability to rate or cyclical shocks across the industry.

Som Distilleries & Breweries Ltd. Business Overview & Revenue Model

Company Description

Som Distilleries & Breweries Limited manufactures and sells beer and Indian made foreign liquor (IMFL) products in India and internationally. It offers beer under the Hunter, Black Fort, Power Cool, and Woodpecker brand names; whisky under the Pentagon, Milestone, and Legend brand names; Vodka under the White Fox brand name; rum under the Black Fort brand name; Brandy under the Legend brand name; ready to drink under the Naughty Orange, Cosmo Cranberry, and Tangy Lemon brand names; and other IMFL products under the Genius, Sunny, Gypsy, and Blue Chip brand names. The company was incorporated in 1993 and is based in Bhopal, India.

How the Company Makes Money

SDBL primarily makes money by manufacturing and selling alcoholic beverages, with revenue largely coming from (1) beer sales and (2) spirit/IMFL sales. The company earns income by producing its own brands and selling finished goods into the trade (distributors/wholesalers/retail channels) where pricing, volumes, and state-specific excise duties and regulations materially influence realized net sales. Additional revenue can come from (a) contract manufacturing or bottling for third parties and/or (b) supplying alcohol/spirits-related intermediates if conducted by the company; however, specific contributions from these streams are null because they are not confirmed here. Key factors affecting earnings include capacity utilization at its brewery/distillery operations, brand mix (premium vs. mass segments), distribution reach across Indian states, and compliance with state excise regimes that impact route-to-market, taxation, and working capital.

Som Distilleries & Breweries Ltd. Financial Statement Overview

Summary

Strong improvement in profitability and margins alongside consistent revenue growth supports a high score. The balance sheet is stable with a solid equity base, but meaningful debt remains a risk. Cash flow is the main weakness, with negative free cash flow in some recent years indicating liquidity/capex coverage challenges.

Income Statement

Som Distilleries & Breweries Ltd. shows strong profitability with a robust gross profit margin and consistent revenue growth over the years. The Net Profit Margin has improved significantly from negative in 2021 to positive in 2025, indicating a recovery and efficient cost management. The EBIT and EBITDA margins are healthy, highlighting operational efficiency. However, the initial years showed losses, which could pose a historical risk.

Balance Sheet

The company's balance sheet showcases a solid equity base with improving stockholders' equity over time, reflecting robust financial health. The debt-to-equity ratio is relatively stable, suggesting manageable leverage levels. The equity ratio indicates a strong asset base funded by equity. However, the total debt levels are significant, which could pose potential risks if not managed carefully.

Cash Flow

The cash flow analysis reveals challenges in generating free cash flow, as indicated by some negative free cash flow figures in recent years. This could suggest difficulties in covering capital expenditures with operating cash flow. The operating cash flow to net income ratio is positive, indicating operational activities are generating cash, but the free cash flow to net income ratio is weak, highlighting potential liquidity concerns.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	14.38B	14.43B	12.83B	8.08B	3.63B	2.88B
Gross Profit	5.29B	4.44B	4.01B	2.96B	1.54B	1.22B
EBITDA	1.93B	1.81B	1.53B	1.03B	195.90M	-70.00M
Net Income	1.11B	1.04B	864.96M	603.02M	-98.40M	-380.73M
Balance Sheet
Total Assets	14.32B	13.43B	11.69B	9.12B	6.99B	7.12B
Cash, Cash Equivalents and Short-Term Investments	192.74M	199.88M	127.75M	126.37M	88.54M	137.25M
Total Debt	2.00B	1.71B	1.97B	2.49B	2.01B	2.10B
Total Liabilities	5.61B	5.56B	5.76B	5.36B	4.10B	4.30B
Stockholders Equity	8.30B	7.48B	5.62B	3.75B	2.90B	2.82B
Cash Flow
Free Cash Flow	585.20M	-583.60M	-85.99M	-851.37M	24.46M	73.81M
Operating Cash Flow	903.70M	422.24M	975.16M	142.75M	92.51M	234.14M
Investing Cash Flow	-1.42B	-1.01B	-1.13B	-1.08B	-60.24M	-128.93M
Financing Cash Flow	504.32M	652.48M	160.51M	973.07M	-82.06M	-179.93M

Som Distilleries & Breweries Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 109.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SDBL, the sentiment is Negative. The current price of 109.45 is above the 20-day moving average (MA) of 77.68, above the 50-day MA of 86.74, and below the 200-day MA of 123.21, indicating a bearish trend. The MACD of -4.13 indicates Negative momentum. The RSI at 33.35 is Neutral, neither overbought nor oversold. The STOCH value of 20.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SDBL.

Som Distilleries & Breweries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMBREW	75 Outperform	₹22.80B	16.42	―	0.72%	―	―
TI	66 Neutral	₹106.82B	-24.49	―	0.21%	3.35%	56.08%
SDBL	66 Neutral	₹14.09B	121.41	―	―	-0.87%	10.87%
UBL	65 Neutral	₹414.67B	132.49	―	0.62%	8.08%	-22.42%
ASALCBR	64 Neutral	₹13.69B	16.60	―	0.21%	16.02%	48.63%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SULA	57 Neutral	₹12.91B	50.36	―	1.67%	-2.15%	-42.78%

Som Distilleries & Breweries Ltd. Corporate Events

Som Distilleries Board Clears Q3 Results, Approves Related-Party Transaction Mandate

Som Distilleries & Breweries Ltd. announced that its board has approved the unaudited standalone and consolidated financial results for the third quarter and nine months ended 31 December 2025, following a prior recommendation from the audit committee. The board also granted omnibus approval for certain related-party transactions in the ordinary course of business and on an arm’s-length basis, indicating ongoing efforts to formalize governance and compliance frameworks as the company reports its latest financial performance.

These decisions, taken at the board meeting held on 10 February 2026, underscore the company’s adherence to SEBI’s disclosure requirements and reinforce transparency for investors and other stakeholders. By simultaneously clearing quarterly results and setting structured approvals for related-party dealings, Som Distilleries & Breweries signals continued focus on regulatory alignment and disciplined oversight of its operating relationships.

Som Distilleries & Breweries Closes Trading Window Ahead of Q3 Results

Som Distilleries & Breweries Limited has announced the closure of its trading window for company shares for directors, key managerial personnel, designated employees and connected persons from the end of the quarter on 31 December 2025 until 48 hours after the declaration of its financial results for that quarter. The move is in compliance with SEBI’s Prohibition of Insider Trading Regulations and the company’s own code of conduct, reinforcing its adherence to governance norms and aiming to prevent any potential misuse of unpublished price-sensitive information ahead of its quarterly earnings disclosure.