IDFC SSKI securities sees 'downside risk' in United Spirits
IDFC SSKI Securities sees ‘downside risk’ in United Spirits in the near term and recommends creating short positions for a ‘retracement’ of 15-20% from the current levels.
By ET Bureau |
United Spirits
cmp: Rs 724.2
target price: NA
IDFC SSKI Securities sees ���downside risk��� in United Spirits in the near term and recommends creating short positions for a ���retracement��� of 15-20% from the current levels. ���At the current market price of Rs 730 (Monday closing), the stock is trading at 16x FY10E (estimated) earnings (net of treasury stock) and 19.1x times, including treasury shares.
This is at 50%+ premium to its global peers ��� Diageo and Pernod Ricard,��� IDFC SSKI said in a report. ���With economic recession adversely impacting liquor consumption globally and risk of profitability, the sector has seen substantial derating ��� trading at PER (price to earnings ratio) of 11x (from 15-18x+ in the past),��� the institutional broking house said.
cmp: Rs 724.2
target price: NA
IDFC SSKI Securities sees ���downside risk��� in United Spirits in the near term and recommends creating short positions for a ���retracement��� of 15-20% from the current levels. ���At the current market price of Rs 730 (Monday closing), the stock is trading at 16x FY10E (estimated) earnings (net of treasury stock) and 19.1x times, including treasury shares.
This is at 50%+ premium to its global peers ��� Diageo and Pernod Ricard,��� IDFC SSKI said in a report. ���With economic recession adversely impacting liquor consumption globally and risk of profitability, the sector has seen substantial derating ��� trading at PER (price to earnings ratio) of 11x (from 15-18x+ in the past),��� the institutional broking house said.
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