Som Distilleries & Breweries Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are well covered by earnings (4.2x coverage).
• Dividends per share have been stable in the past 10 years.
• Som Distilleries & Breweries's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Som Distilleries & Breweries's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Som Distilleries & Breweries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Som Distilleries & Breweries is profitable, therefore cash runway is not a concern.
• Som Distilleries & Breweries is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 1.9x debt.
• Som Distilleries & Breweries's cash and other short term assets cover its long term commitments.

Cons

• Debt is not well covered by operating cash flow (0.3%, less than 20% of total debt).
• The level of debt compared to net worth has increased over the past 5 years (13.3% vs 47.1% today).
• Interest payments on debt are not well covered by earnings (EBIT is 3x annual interest expense, ideally 3x coverage).
• Som Distilleries & Breweries's level of debt (47.1%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Som Distilleries & Breweries management team is about average.

Cons

• The average tenure for the Som Distilleries & Breweries board of directors is less than 3 years, this suggests a new board.

misc

Pros

Cons

• Som Distilleries & Breweries is not covered by any analysts.
• Som Distilleries & Breweries has significant price volatility in the past 3 months.

past

Pros

• Som Distilleries & Breweries's year on year earnings growth rate has been positive over the past 5 years.

Cons

• Som Distilleries & Breweries's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Som Distilleries & Breweries used its assets less efficiently than the IN Beverage industry average last year based on Return on Assets.
• Som Distilleries & Breweries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Som Distilleries & Breweries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Som Distilleries & Breweries's 1-year earnings growth is negative, it can't be compared to the IN Beverage industry average.

value

Pros

• Som Distilleries & Breweries is good value based on assets compared to the IN Beverage industry average.

Cons

• Som Distilleries & Breweries's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Som Distilleries & Breweries's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Som Distilleries & Breweries is overvalued based on earnings compared to the IN Beverage industry average.
• Som Distilleries & Breweries is overvalued based on earnings compared to the India market.
• 507514 underperformed the Beverage industry which returned -1.3% over the past year.
• 507514 underperformed the Market in India which returned -14.5% over the past year.
• BSE:507514 is down -11.4% underperforming the Beverage industry which returned 9.9% over the past month.
• BSE:507514 is down -11.4% underperforming the market in India which returned 8% over the past month.