Som Distilleries and Breweries


(nitinver) #37

Observed a very peculiar and a disturbing trend in SD.Form Jun18 Q to Sept 18Q, all shareholders,promoters plus public, having more than 1% stake, reduced their stake.It is very uncommon to see such a “united” action by key shareholders to jump out of a sinking ship.Look everyone A huge red flag.


#38

No of shares haven’t changed but percentage holding has changed due to increased share capital.


#39

As per today’s management note…Hunter is already available in 30% of point of sales in Mumbai and the brand is received well. Lets see how the numbers fare in next quarters…


(pjain) #40

(Ragav1024) #41

Beer is a volume game. Margins are less but surely with gain in the market share volume, margins can grow gradually.

there is an entry barrier in the liquor industry. But , we already have enough number of competitors in India with more foreign companies particularly in beer products. On average only 10-125% of the population would prefer to have imported drinks due to huge price gap. Hence, certainly, they are not competitors for SOM. I strongly believe, if there is a price advantage in retail price, then surely market share will be gained. Do anyone have any listing of prices in SOM’s market to check retail price for SOM’s product.

Disc. Not yet invested but may pick some tracking quantity shortly.


(Ragav1024) #42

Series of acquisitions made by promotor in the open market.


(Raj A A) #43

First two transactions are one and the same. Pls look at the total quantity and the percentage. All these purchases have increased his holding by 0.1%. Let us see these token purchases have anything to do with third qtr results. Historically 3rd qtr results were muted. Let us see whether this time it is different.


(ramprakashs) #44

The conference call was interesting with aggressive last quarter targets of close to Rs 140 cr…Also promoter said he will come back in 1-2 months on the increase in promoter holdings bit. Hope he does.


#45

140cr net sales or gross sales?
Q4 is always greater than Q3 due to seasonality. Still 140cr can be good number.


(ramprakashs) #46

I think gross sales,still it is a very good number.


#47

140 cr gross sale can’t be good number, last quarter gross sales already 130 cr.
Net sales is net off excise duty which is 85 cr only for last quarter (45 cr is excise duty)

Generally we can see a pattern of 50% increase in revenue for Q4 QoQ due to seasonality of the bear consumption.


(Ragav1024) #48

I couldn’t find the Q3 con call audio / transcript anywhere. Could someone pls provide me the link for the same.


(Raj A A) #49

Board is meeting on March 2, 2019, to consider conversion of warrants into equity shares @ Rs 271.55. Let us hope promoters take the shares @Rs 271.55.


(Ragav1024) #50

Why should promoters buy @271 when it is available in the open market at @140 / share ?


(Ragav1024) #51

i believe the recent upward movement in price is due to new FSSAI regulations. It appears many unorganised breweries will find it difficult to survive due to new regulations.


(Ragav1024) #52

Could some one help me to understand the impact of conversion of warrants into equity.

Why does the SOM India gains 13% on this issue. how is this favourable to company ( or investors)


(Raj A A) #53

SOM promoters have taken the conversion of 12.669 lac warrants into equal No. of shares @Rs 271.55 paying the company balance 75% of the outstanding amount. This conversion has increased the promoter shares from 20.67% to 23.82%. Further they have called for an EGM on 26th Mar, 2019 to consider splitting the shares from Rs 10/- to Rs 5/-


#54

Agenda of board meeting to be held on 26th March

image

Why company need 500Cr borrowings further as it recently completed huge capex already.?

Are they want to give this borrowings as loan to other promoter entities or to themselves?

Disclosure:
Invested


(stock_passion) #55

Have been trying to reach the company secretary via email …no response even after couple of reminders. Funny part is they don’t have their own email domain …they r using rediffmail.com


(Ragav1024) #56

Do anyone has got any info on reason to borrow Rs 500 Crore. The amount of loan is little over than the entire market cap of SOM, which makes to worry