In a significant development that has caught the eye of market watchers, renowned investor Dolly Khanna has ramped up her stake in Som Distilleries and Breweries, a smallcap player in India’s alcoholic beverage space. The company has also announced the commencement of beer dispatches from its Hassan, Karnataka facility to Tamil Nadu, marking a pivotal entry into one of India’s most lucrative liquor.
A Vote of Confidence: Dolly Khanna’s Stake Hike
According to the latest shareholding disclosures for March 2025, Dolly Khanna has purchased 21,95,914 shares, raising her stake in Som Distilleries to 2.41%, up from 1.39% in December 2024. This 1.02% increase signals renewed investor confidence in the company’s strategic direction, and the market has responded favorably.
Khanna, a Chennai-based ace investor known for her sharp acumen in identifying promising midcap and smallcap stocks, has a track record that stretches back to 1996. Her portfolio—managed by husband Rajiv Khanna—leans toward manufacturing, chemicals, textiles, and now, increasingly, consumer-oriented sectors like alcoholic beverages.
Strategic Expansion into Tamil Nadu
Som Distilleries’ latest operational milestone comes from its Hassan, Karnataka plant, from where it has initiated dispatches of beer to Tamil Nadu. This move marks a calculated entry into one of the largest and most regulated alcohol consumption markets in India.
The Hassan facility has recently undergone capacity enhancements, including the commissioning of wrap-around packaging equipment. With improved logistics and packaging capabilities, Som Distilleries is better positioned to tap into high-volume states. The Tamil Nadu foray complements its expansion roadmap that already includes aggressive moves in Uttar Pradesh, Rajasthan, Delhi, Jharkhand, and Northeast India.
Why Investors Are Watching Som Distilleries
Som Distilleries & Breweries, founded in 1993 and headquartered in Bhopal, Madhya Pradesh, is part of the diversified Som Group, which also has interests in real estate and infrastructure. With beer contributing 93% of revenues, the company’s flagship brands—Hunter, Black Fort, Power Cool, and White Fox Vodka—have achieved strong recognition in domestic and international markets. It exports to 24+ countries and holds several contract manufacturing partnerships.
What’s fueling market optimism:
- Greenfield Project in Uttar Pradesh: An INR 600 crore project on 40 acres in Farrukhabad district, aiming to set up a distillery and brewery, is expected to significantly scale up production capacity.
- Promoter Confidence: Promoter holding has increased from 35.33% in September 2024 to 38.75% in March 2025, reflecting management’s long-term belief in the company’s growth potential.
- Financial Health: Som Distilleries has shown impressive profit growth of 35% CAGR over the past five years. With a PE ratio of 27x, ROE of 18%, and ROCE of 19%, the company stands strong among its small-cap peers.
- Stock Performance: The share is up over 50% from its 52-week low of INR 96 per share, having touched a high of INR 148.75 per share in May 2024. Currently, the stock remains relatively flat over a one-year period, offering what some analysts call a “value re-entry point.”
Risks Remain, But Momentum is Strong
While the growth narrative is compelling, Som Distilleries operates in a sector subject to volatile excise policies and state-level restrictions. For instance, dry laws or shifts in excise duties in states like Madhya Pradesh could pose headwinds.
That said, with strong fundamentals, active capacity expansion, and an ambitious market penetration strategy, the company seems well-prepared to ride out regulatory uncertainties. The entry into Tamil Nadu is being seen as a turning point that could further widen revenue streams and build brand equity in southern India.
Bottom Line
With a market cap exceeding INR 2,700 crore, a growing footprint across India, and the backing of a savvy investor like Dolly Khanna, Som Distilleries is increasingly being seen as a smallcap stock with bigcap aspirations. The company’s moves in Karnataka and Tamil Nadu could very well catalyze its next phase of growth—and investors would do well to keep it on their radar. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.