India's Som Distilleries continues slide on threat of plant being impounded

Som Distilleries and Breweries

20/06/2024 11:20

(Updates with analyst comment, closing levels)
    ** Som Distilleries  SDB.NS  closed ~2% lower on the day,
taking losses to ~9% in 3 sessions
    ** Slide started after police started probe into Som over
allegations of employing children at a distillery, which Som
says is run by its "associate private limited company"
    ** Authorities plan to impound the distillery, suspend
manufacturing license of the plant in Madhya Pradhesh state
    ** Som, which makes Hunter and Woodpecker beer as well as
spirits, says no govt dept has taken action on the company
    ** Som's loss is a likely gain for United Breweries and
local brands, says Elara Capital analyst Karan Taurani
    ** In past three days Kingfisher beer maker United
Breweries' stock  UBBW.NS  has dropped ~1%
    ** Johnnie Walker whiskey maker United Spirits  UNSP.NS  is
about flat, while fellow whiskey maker Piccadily Agro  PICA.BO 
has shed ~3% in that period
    ** Biggest gainer is Radico Khaitan  RADC.NS , which makes
Rampur single malt and Jaisalmer gin; stock has risen ~4%

 (Reporting by Nandan Mandayam and Hritam Mukherjee in
Bengaluru)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))