Ramesh Damani, Member BSE is of the view there is a lot of money still to be made in United Spirits for long-term investors. It is going to be emerge as a classic blue-chip company, which is a must have in any well constructed FMCG portfolio.
Damani told CNBC-TV18, "I own United Breweries so I am very happy about that. You have to let the market decide on the wisdom or the value of a particular stock. Clearly it has not been valued on earnings basis."
He further added, "In terms of United Spirits, I think it represents an opportunity, I think I would be a buyer at some serious correction in these stocks because ultimately this will become one of those classic FMCG companies in India whether it is a Lever, a Nestle and in that same mode get an extraordinary P/E, the dilemma out here – in my view – is that they are - Diageo is not going to get to 51 percent which would make them extremely uncomfortable. So what is the process, how do they go from 26 percent holding now to 51 percent? So there have to make some actual shareholder friendly moves in order to get to 51 maybe by emerging Diageo private into this company, maybe by doing creeping acquisition. So my sense is there is a lot of money still to be made in United Spirits for long-term investors. It is going to be emerge as a classic blue-chip company, which is a must have in any well constructed FMCG portfolio."
"Midcaps have fallen so far, I think big midcaps in December lows or even June-July lows, we have doubled our money in those stocks. So it is good time to be in midcaps as it was in December and July but we continue to find great value among the midcap space."
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