Small-cap stock Som Distilleries and Breweries surged nearly 10% in intra-day trade on Thursday, June 5, after promoter Deepak Arora raised his stake in the company by purchasing stock via the open market. An increase in promoter holding is generally viewed as a positive signal, as it reflects the promoters’ confidence in the company’s future prospects.
According to a filing shared by the company, Arora lapped up 20,000 shares of Som Distilleries and Breweries, representing a 0.0096% stake, taking the overall promoter holding in the company to 39.3619%. His individual stake in the company rose to 2.16% from 2.15% earlier.
The stake acquisition news by Arora comes at a time when many promoters are large investors are offloading stakes in companies. According to a report by The Economic Times, promoters and other large shareholders have offloaded shares worth a staggering ₹43,400 crore in May alone.
Som Distilleries stock trend
Small-cap stock Som Distilleries and Breweries gained as much as 9.92% intra-day deals to hit the day’s high of ₹154.50. The scrip finally settled the day at ₹152.55, up 8.54%.
In the last three months, the brewery stock with a market capitalisation of ₹2,956 crore has risen 28%. And in the past one year, Som Distilleries’ share price is up 25%.
On a longer time frame, the stock has given multibagger returns to investors, surging 473% in three years and 992% in five years.
Som Distilleries’ earnings snapshot
The company last week released its Q4 results, reporting a 20% year-on-year increase in profit after tax to ₹104.09 crore. Its revenue jumped 12.52% to ₹1,447 crore in the quarter under review.
The company reported an EBITDA margin of 12.49%, up from 12.07% in the previous year. In absolute terms, EBITDA grew by 16.46% year-on-year to ₹180.71 crore, demonstrating enhanced operational efficiency.
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