Sell United Spirits as no major upside is expected: Rajen Shah, Angel Broking

In a chat with ET Now, Rajen Shah, Chief Investment Officer, Angel Broking, shares his views on United Spirits Ltd.

ET Now: What is your call on United Spirits?

Rajen Shah: United Spirits looks to be fairly priced. Recommend selling the stock because if Diageo is a $17 billion turnover company. The market cap is about $70 billion or so. It is trading at about 4 times to sales. Pernod Ricard has about $11-12 billion revenue and the market cap is about $28-29 billion. It is at about 2.5 times of sales.

At about Rs 1900-1950 United Spirits would be reporting Rs 10,000 crore revenue this year. The market cap is about Rs 25,000-27,000 crore and it is 2.5 times which makes it fairly priced. Therefore, do not see any major upside in United Spirits from the current levels and recommend a sell.