Joined their AGM today. Mr. Arora did not join and their finance director, Nakul Sethi, chaired the meeting. He seems to be the only public person for the company interacting with shareholders of late. Also, no good questions asked. 3-4 shareholders who spoke seemed to be planted by the management as they only showered very random praises at the company.
That said, I can see first hand that their brand Hunter is doing very well in Delhi - kind of like how Kingfisher strong used to do back in the day. Woodpecker is actually one of the best beers I have had and when I learned that an Indian listed company makes it, I bought their shares.
While the management appears to have solid transparency issues, their products are strong. A conundrum for me personally.
Same could been said about Vijay Mallya’s United Spirits and United Breweries. Still both the stocks have been a multibagger despite questionable management.
Disc- Invested
Absolutely bang on Dr Harshil Rohit… Even I believe the same at the end of the day if company’s product is of good quality and reasonable price just what customers like…company shareholders are going to be benefited in the long term
So funny. Only 20 days suspension and the government says we are punishing the violators. Permanent suspension should have been done.
I think SOM distelleries’s valuation has taken into account all the management issues and hence has a lower PE than peers like Tilaknagar.
Current promoters can just stay as stakeholders but should change the management, that can give a value boost to Som. Till then I’m out
Everything has been going right with the company… Growth, Capex, WC reduction, Decent ROE, newer brands, Higher penetration in the existing and new states, … Managmennt is dubious but i dont think stock deserves this valuation…
Disc… will sit on sidelines for some MF to come in
whatever mutual funds/ FIIs were there have exited in September 2024… it seems it will take a long time for them to come. only retail investors are holding…
as if doubtful governance was not enough… investor calls/ AGMs are extremely poor…
Thought of sharing the below videos, which may be good for an understanding of the industry.
Looking at the whole thing, SOM does seem to have some potential and doing some right things recently, which are reflected in their numbers, also the Hunter and Woodpecker beers are pretty good.
Regarding, the management don’t expect them to be like that of U Breweries or U Spirits, as they are not in the same league altogether.
this is conversion of warrants not bought from market. this allotment was done at Rs. 110 (post split) lower than market price at that time of Rs. 130. this says a lot about the intention of promoters. thankfully price has come down to 110.
companies with poor corporate governance will not get the right value as investors dont know what is going in the company.
The management and the investors participating in the concalls of the company have totally skipped a very important issue of the case of benami shares -which were attached by the Income Tax Dept.’s Benami Prohibition Unit (BPU), Bhopal , the case of which is still pending in the High Court. The SC had stayed the HC order on swapping of the benami shares with attachment of the equal number of shares of the promoter,but the case of Benami Shares is still pending with the High Court.It is very surprising that in the concalls of previous quarters ,there is NO mention of this benami shares case’s status. The management and investors have remained totally silent on this very important matter in the concalls .A total of 1.20 crore shares have been alleged to be benami shares belonging to 8 individuals have been attached post the income tax raid on the company in November 2023.The real ownership of these 1.20 crore benami shares is alleged to be of the promoter.The Income Tax Dept.’s Benami Prohibition Unit (BPU), Bhopal provisionally attached these shares under the Prohibition of Benami Property Transactions Act, 1988.If there is any adverse order like confiscation and auction of these 1.20 shares by the Government, then the impact on the share price will be negative and very adverse.The company may also face a setback as there will be adverse penalties and demands under the various tax laws also if there is an adverse order on the benami shares case. The investors sentiment will also take a big hit.No HNI investor’s name in the list of shareholders will be able to shield the company in such a scenario. Disclosure : was invested in the company in
the past but exited due to these corporate governance issues
