United Spirits’ huge exposure to Kingfisher a concern: Avinash Gorakshekar, Anagram Capital Ltd

Avinash Gorakshekar, Head of Research, Anagram Capital Ltd, in a chat with ET Now talks about United Spirits and Global Spirits.

Do you like the alcohol story?

United Spirits definitely is one of the largest players in this space. We actually like another company called Global Spirits here which is typically from the tier-2 kind of category space. They have been making a conscious effort to get into the branded IMFL space. So here probably we expect growth to be faster because the base is also pretty small.

In United Spirits, the only concern, which we feel is that it has got a huge exposure to Kingfisher Airlines and to some extent when Kingfisher actually comes out with its proposed QIP or an IPO, only then the debt on United Spirits book will come off. That is something, which has been subsidising the running and the operations of Kingfisher Airlines, which - longer term - is definitely a kind of a word of caution at this point of time.