Buy USL for an upside over the next two to three years: Avinnash Gorakssakar

In a chat with ET Now, Avinnash Gorakssakar, Head of Research, Miintdirect.com, shares his views on USL.

ET Now: USL is at 2648. People said it was expensive at 1800, people said it was expensive at 2200, I am sure people are saying it is expensive right now too, what are you recommending to your clients?

Avinnash Gorakssakar: Clearly there is a scarcity premium for a stock like United Spirits and more importantly if one looks at the long term kind of business potential for the liquor market in India, my guess is over the next two to three years, they have a very large monopolistic position, they have premium brands and this situation is going to continue. There is no competition which is anyway nearby to them so clearly if one has a medium to longer term kind of horizon, one should definitely buy it, one should not look at near term valuations. Clearly although target price given by MS is extremely aggressive, my sense is in these kind of stocks, the large institutional as well as the HNI holders are unlikely to release stocks in the very short term. So clearly buy on dips and clearly whenever there is a small or good correction, this should be a part of your portfolio for a good upside over the next say two to three years.