Showing posts with label stock watch united spirits sell cmp rs 1850. Show all posts
Showing posts with label stock watch united spirits sell cmp rs 1850. Show all posts

Friday, November 16, 2012

STOCK WATCH : UNITED SPIRITS - SELL CMP RS 1850.

United Spirits is the only stock that is trading beyond 100 PE multiple among the NIFTY Junior. The stock has risen more than 40% in the last couple of trading sessions, after Diageo deal was concluded. For the latest quarter the company reported a net of Rs 39cr on an equity of Rs 131Cr, giving an EPS of Rs 3. Although stake sale and subsequent open offer by Diageo group to acquire further 26% makes qualitative difference, the stock has risen mostly because of speculative interest. The stock has already surpassed the one year re rating target in just 4 trading sessions. That is something unusual. This kind of spurt in price is unlikely to sustain for long. More over the open offer price at Rs 1440. Investors can sell at current level and can re enter later.