Som Distilleries and Breweries Ltd (BSE: 507514) continues its uptrend on expansion plans in Karnataka and better performance in the past two years.
The scrip is already up 7.15% to Rs 252.50 after hitting a 52-week high of 262.90 in early trade, continuing the uptrend after Porinju Veliyath bought substantial shares in the company. It was reported that Porinchu Veliyath had bought 1,50, 000 shares of the company at 197.95 levels and EQ India Fund had bought 5,00,000 shares at 197.
The company had revenues of Rs 247.8 cr in FY2017 and net profit of Rs 13.93 cr as against Rs 221.36 cr and Rs 13.38 cr respectively the previous year. Higher interest rate burden and provision for tax had caused muted growth in net profits.
The company under the leadership of J K Arora, Chairman and Managing Director has expanded its business from Central India to South India by setting up Woodpecker Distilleries and Breweries Pvt Ltd. The company had invested Rs 40 cr in the subsidiary and net profit for September quarter was up 79.25% to Rs 4.94 cr while sales was up 50% to Rs 70.78 cr.
It’s premium hunter brand had achieved sales of over 2 million cases. The company’s 82% of its top line growth is accounted for by beers. The company had announced its strategies for having a pan India presence and growth by organic and inorganic route through acquisitions.