SP Tulsian, sptulsian.com shares his view on United Spirit .
Tulsian told CNBC-TV18, "United Spirit, I gave my view day before after the results that market has become so negative that probably might be a technical call but still if you see the fundamentals, I agree that Q3 has been disappointment with EPS of Rs 3-3.5 against Rs 10 having posted in the previous two quarters. But if you see the fundamentals, the largest breweries in the world, largest spirit maker in the world and the kind of valuations it is getting now at PE multiple of close to 12-13 against United Breweries ruling at PE Multiple of 70 plus. I don't think these kinds of valuations are justified for this largest spirit maker."
He further added, "On a pure fundamental call, I have been maintaining my view that move to about Rs 750 when the stock was recommended by me and I maintain that probably the same view. In fact Rs 750 was the target given in next 4-6 months but that is likely to get achieved probably in the next couple of months. So I maintain my positive view, the technical factors have been making the stock so volatile and on January 12, you had 52 week low of Rs 450 and today it is ruling at Rs 640- 650. So this kind of volatility is largely due to the technical factors and fuel has been added to fire because of the bad Q3 results."
