United Breweries Holdings may rally to Rs 120: SP Tulsian

United Breweries Holdings may rally to Rs 120, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, “I don’t think that in Mangalore Chemical you have much upside because the stake sell is bound to happen, but maybe the expectation is that it is likely to happen maybe at about Rs 64-65 per share and because of the low promoter stake of 30%, the open offer for 26% is going to see the lower acceptance ratio even if the deal happens at Rs 64. So the upside can be capped at about Rs 53-54.”
He further added, “UB Holdings, which is the flagship investment arm of the group they are holding Rs 3 crore shares of United Breweries and Rs 2.40 crore shares of United Spirits and the kind of run up which we have seen in the prices of both these stocks United Breweries and United Spirits has made the share of United Breweries Holdings to rule at a NAV of about 10-11%, I am not including the value of 20 crore shares which they are holding in Kingfisher. So now this seems to be a foregone conclusion that ultimately the debt has to be paid by the UB Group to all the bankers. There is not likely to be any re-schedulement or restructuring kind of process on which I had been taking a call for last two-three months. So that can make the United Breweries Holdings to move very speedily, maybe to about Rs 120 in next one month or so and the third stock where this stake sell can happen will be either in United Breweries or in United Spirits. So one has to really take a call, because if you see United Breweries Rs 1 share is ruling very high at about Rs 530, United Spirits Rs 10 face value share is ruling at about Rs 750-755. So you have upside on both the stocks provided you can take a call that the stake sell is likely to happen in which company either of. So the first choice of making quick bucks will be in the United Breweries Holding even at the current level.”