After 300% rally in a year, is there more steam left in this multibagger liquor stock?

Shares of multibagger Som Distilleries & Breweries Ltd have rallied over 300% in the last one year, leaving investors guessing if there is more upside ahead in this liquor stock. The stock closed at Rs 72.04 on July 15, 2022 and ended at Rs 305.05 in the previous session, delivering 324% returns to investors in a year. Som Distilleries & Breweries shares surged 4.65% intraday to Rs 318 in the previous session. Som Distilleries stock opened lower at Rs 301.35 on BSE. It closed 0.39% higher at Rs 305.05 in the previous session.  

The stock hit a 52-week low of Rs 69.90 on July 15, 2022 and a record high of Rs 319.50 on July 11 this year.     

Total 1.25 lakh shares of the firm changed hands amounting to a turnover of Rs 3.86 crore in the previous session. Market cap of the firm stood at Rs 2356.83 crore on BSE.    

In terms of technicals, the relative strength index (RSI) of Som Distilleries stands at 70.4, signaling it's trading in the overbought territory. Som Distilleries stock has a one-year beta of 0.7, indicating very low volatility during the period.  The stock is trading higher than the 10 day, 20 day, 50 day, 100 day and 200 day but lower than the 5 day moving averages.          

The stock has gained 96.05% 146.84% and 157% in the last three months, six months and YTD basis respectively.    

Here’s a look at what analysts said on the outlook of the stock.  

Abhijeet from Tips2Trades said," Som Distilleries is bullish but also overbought on the Daily charts with next resistance at Rs 337. A daily close below support of Rs 298 could lead to a fall till Rs 254 in the near term." 

Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher said, "The stock has given a decent rally in the past 4-5 months. It has almost touched the peak zone of Rs 320 and has witnessed some resistance and after a short dip has again picked up momentum to further improve the bias and one can anticipate further rise. The next target can be expected for Rs 340-350 zone with near-term support of Rs 285. The RSI is near the overbought zone and has potential to carry on the momentum still further ahead." 

In the last session, the stock rose over 4% intraday after the firm said its beer brands have received permissions for supply to Rajasthan. 

“Our beer brands have received permissions for supply to the state of Rajasthan. Rajasthan is one of the top five states in the country in terms of consumption. Looking ahead, we are committed to building our market share in Rajasthan and expanding our presence in the other states,” said the firm in a communication to bourses.   

Som Distilleries is engaged in the manufacture and sale of beer and Indian-made foreign liquor (IMFL). The company's product portfolio consists of various options across the beer, rum, brandy, vodka, and whisky categories. Its flagship brands include Hunter, Black Fort, Power Cool and Woodpecker in the Beer segment and Milestone 100 whisky and White Fox vodka in the IMFL segment. Its other IMFL brands include Legend, Genius, Sunny, Gypsy and Blue Chip.  

 

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