Ajay Srivastava, CEO of Dimensions Consulting advised investing in United Breweries and United Spirits as he feels these companies are going to do extremely well in the next three years.
Srivastava told CNBC-TV18, “I mentioned United Breweries and United Spirits. Post Kingfisher Airlines (KFA) debacle everything is over, the airline is dead, the bankers can recover what they want and we all know the exact securities that can come. And therefore, these companies to a large extent will remain out of the ambit of the creditors.”
He further said, “So you now have come to the reflection point that you should be investing in United Breweries and United Spirits because these companies are going to do extremely well in the next three years. They are giving you opportunities like Rs 1800 on United Spirits. If it corrects or even at here, start accumulating. Rs 600 on United Breweries is a definite buy because eventually, that is the point.”
“I don’t know how the creditor pans out. Eventually, may be Heineken buys out United Breweries where the share price buy out will be closer to Rs 1500 plus. If you look at the Singapore acquisition of Heineken which has just been done, you are talking of serious values in both companies on a control premium and a full exit of Mallya if it happens and if the creditors go the whole hog. Even if they don’t, these are good strong companies. These twins are a good buy as you start accumulating,” Srivastava added.
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