SP Tulsian bullish on United Spirits

Tulsian told CNBC-TV18, “I still maintain a bullish view on United Spirits . When the share price was ruling at Rs 600, that time my view was that the deal can happen at Rs 1200 per share. Diageo, the second largest spirit maker, or neck-to-neck to United Spirits is keen to acquire the stake in United Spirits."

He further added, "On fundamental basis, United Spirits is an Rs 10 face value stock. It has posted an EPS of close to about Rs 11 for Q1. If I just take a Rs 40 EPS also and give a PE multiple of close to about 30, while the spirit companies or the breweries companies are ruling very high PE multiple then also the market price can move to about Rs 1200 or so and in case of the strategic sale if UB group agrees to give 25% coupled with 26% open offer to be followed thereafter, I think the share price can really go to Rs 1200-1300 on the market and the valuation or the deal can happen at a price of Rs 1500-1600.”