Som Distilleries (SDBL)

FairStock Score: 16/100 — RISKY

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• ROE of 14.23% and ROCE of 17.98% suggest decent capital efficiency in normalized periods
• Latest quarter sales of ₹251 Cr indicate the business still has meaningful operating scale
• Price is well below the 52-week high of ₹144.66, offering a potential recovery range if operations stabilize
• P/E of 18.91 is not extreme, though it is based on collapsing earnings

Concerns

• Profit growth down -75.99% and sales growth down -16.79% show severe operational deterioration
• Latest quarter net profit of ₹5 Cr on ₹251 Cr sales implies a razor-thin net margin of around 2%
• Piotroski F-Score of 3/9 and FairStock Score of 15/100 signal poor financial health and high risk
• No dividend yield and promoter holding of only 39.39% reduce minority investor comfort

AI Analysis

Looking at Som Distilleries, I ask what I am really getting for my money. At ₹94.09, the market values it at ₹1,672 Cr, which is 18.91 times trailing earnings and 3.60 times book value. But those earnings are collapsing: profit growth is -75.99% and sales have fallen 16.79%. A business cannot be priced on trailing earnings when current earnings are clearly not sustainable. The latest quarter shows only ₹5 Cr profit on ₹251 Cr sales—a net margin of roughly 2%. That is far too thin for comfort. Graham would remind me that price is what you pay, value is what you get, and here I see very little margin of safety. The Piotroski F-Score of 3/9 and FairStock Score of 15/100 reinforce the picture of weak financial health. Promoter holding at 39.39% is not very reassuring, and with zero dividend yield, my only conceivable return must come from a genuine recovery in operations. The ROE of 14.23% and ROCE of 17.98% show the business can earn decent returns in better times, but current negative growth and deteriorating profit are demanding a turnaround, not just a cyclical wobble. This is not a wonderful business at a fair price; it is a struggling one at an uncertain price. I would need a much lower valuation or clear evidence of stabilising sales and margins before investing. Until then, I prefer to watch from the sidelines.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer