Exit Kingfisher, United Breweries may touch Rs 700: Tulsian

SP Tulsian of sptulsian.com told CNBC-TV18, "If one really sees United Spirits there are non-credit in respect of the disposal of the stake held by the banks, because major chunk of the promoter holding has not been transferred to Diageo at Rs 1,440. Diageo is sitting with close to about 24-25 percent stake. What will be the stand of the banks, whether they will be willing to sell that stake to Diageo at Rs 1,440 or they will dump that stake in the market?"

He further added, "In case of Kingfisher Airlines (KFA), Vijay Mallya said he did not have salary to pay, so one does not have any hopes of the debt repayment or the revival plan having submitted. It sometimes feels that promoters seem to have lost their focus on KFA and they are not interested to see that company again reviving or anything happening from their side. So one should really close their eyes from there."
"But yes, yesterday we have seen United Breweries correcting, but that has been the general phenomenon of the stock. It really behaves with a high volatility of 7-8 percent on the either side. I do not think that there is any problem in respect to the United Breweries. The stock will definitely bounce back to the level of Rs 700 or so, because the promoter stake is not pledged to a greater extent. Of 37 percent stake by the promoters only 10 percent is pledged, that remains untouched and clean company."
"On Mangalore Chemicals, I do not know what is happening on that front. Why the stake sale is not being initiated either by the banks or the promoters because part of the stake has already been acquired by the Zuari Group," SP Tulsian said.