United Spirits may rally to Rs 750, says SP Tulsian

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United Spirits may rally to Rs 750, says SP Tulsian

United Spirits may rally to Rs 750, says SP Tulsian, sptulsian.com.

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Excerpts from Closing Bell on CNBC-TV18 Watch the full show » ALSO READ See previous views by SP Tulsian See what other Experts & Brokerages are saying about United Spirits See messages about United Spirits

United Spirits may rally to Rs 750, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "United Spirits has touched its 52 week low on 12th January at Rs 450 and today or maybe yesterday it was at Rs 675 that means in four days the stock has risen by 50% in fact I have been maintaining my positive call and this was the first stock which I recommended on 2nd January at the same Rs 485- 490 and I think I see lot of value because purely on fundamentals, I am not going by the news in respect to the fresh amount being raised by the company which is already a history because for that the proposal and the information have already been available in the public domain but if you go by the pure fundamentals they are the larger spirit makers in the world and even after such a big run up the share is ruling at a PE multiple of close to about 13-14 which I don't see any reason because traditionally the stock has ruled at a PE of close to about Rs 25 and there was no reason for the stock to fall so much."

He further added, "The only fear that probably the stake of the UB Group is pledged with the lenders to the Kingfisher Airlines the stock has taken such a beating. So now maybe the value buying or maybe the informed buying has come in a very big way which led to this 50% rise in less than a week in the stock. But I think that now it should take a halt or it should take Rs 650 but on a longer term basis if somebody can take a call can still expect the price of Rs 750 in maybe next couple of months or so."