SP Tulsian`s view on United Breweries, Kingfisher Airline

SP Tulsian, sptulsian.com shares his view on United Breweries and Kingfisher Airline.

Tulsian told CNBC-TV18, “The rise in Kingfisher Airline is consequential and if you see probably the two stocks- United Breweries and United Spirits, I may attribute for rise in United Breweries because of very good numbers having posted by the company. If you see the EPS for the quarter at 3.75 indicates that probably the results are looking very clean and may be the same kind of results can get extrapolated for the remaining quarters with top line may be close to about Rs 5000 crore for whole of FY13 with may be EPS of close to about 14-15 and that translates into the share ruling at a PE multiple of close to about 40.”
He further added, “I may not attribute any kind of corporate development happening in this company largely on the back of the stake sale by the promoters, the UB group which they have 37.5% stake in the company along with the foreign partner who is also holding 37.5% because earlier there was talk that probably the foreign partner is looking to acquire the stake in the company. But if I come specifically on United Spirits on which I have been maintaining a very positive call for last 6 months that it is imperative for the UB group to sell and exit from the company and there was talk with the Diego group for last may be couple of months. But last week we have seen some kind of regulatory hurdles coming in from Europe in respect to the acquisitions of DIEGO and may be that may be getting sorted out and if that happens because UB Group is holding close to about 29-30% stake in the company and the kind of valuations which has been demanded and for which the DIEGO is prepared to make payment probably, the share has still some more upside. I won't be surprised to see it moving may be beyond Rs 1000 or so in the near term if the deal goes through.”
“Now the market is probably taking a call that the kind of amount which can get mobilized by the UB Group may be to the extent of about may be Rs 8000-9000 crore if they sell the entire 26-27% stake because DIEGO is learned to be in talk to acquire 26% or interest rate in acquiring 26%. And if that happens then the entire amount will go for retirement of the debts of Kingfisher Airlines. So that’s the reason I said in spite of the poor numbers posted by Kingfisher Airlines, we have seen the stock frozen upward with 20% could be the consequential because of this development. So it is very important to keep an eye on the corporate developments happening in United Spirits in respect to the stake sale by UB Group.”