Lets take a step back to probe the possibility of highlighted growth of the company. I have created a table based on what I think can be a possible path to sale of 150 million cases by FY 30. It translates into a possible sales growth of approx. 10x from FY 23 levels. Imagine what such growth can do to the share price. Considering they’ll require ~ INR 12 crore to add 1 million cases of capacity (adjust for inflation in the coming years) it looks manageable amount of money with multiple financial instruments at their disposal. I have taken 90% revenue from beer and 10% from IMFL.

From the consumer point of view, considering the price hike in IMFL vs Beer across India, its reasonable to assume that beer volumes may grow disproportionally and on the higher side. I spend a lot of time abroad, and almost always found people drinking beer over hard liquor (unless they are addicted to a brand). I have personally tried SOM products for over a year and loved their beer, all three of them stood high on my quality index, namely power cool, hunter and woodpecker (Woodpecker started coming into the market just recently).

The very nature of liquor industry dealing directly with Govt is bound to raise confrontations at times and its possibly true of any company operating in the liquor space. Despite this constant, SOM went up from ~40 Rupee per share to a high of 380+ in a short span of time and companies like Carlsberg and Radico have collaborations with them along with ace investors putting their money into it. So overall, long term story looks positive to me but as always, be alert when investing.

Hi, Is there any such active group for Ahmedabad?

The company is available at very cheap prices no doubt. But certain things need more attention and clarification. If anyone can clear it up.

A. CEO is from the broking /securities background. How experience in broking background will help in roadways and infra business is anybody’s guess. I at least not able to see how these two fields can overlap, as experience in the broking industry is very different from the experience required to build roadways and highways.
B. I skimmed the annual report and noted there are only 9 permanent employees on the rolls. I am intrigued to understand how an infra company can function in a labor-intensive industry
Infra in India is a very difficult undertaking and would be watching the company to see how they shape up. D- No investments.

I think we have a good number of replies to have our first meeting. Lets plan to meet post Diwali, I will come back with venue. In the mean time please suggest agenda for the meet besides getting to know each other in the first meeting. Suggest we meet immmediately after Diwali.