United Spirits on heady rise

United Spirits remains strongly in the gainers list, with the stock today also rising and figuring in the top gainers list. The stock is currently up over 3.5% at Rs.804.70, with an intra day high at Rs.815. Its 52-week high is at Rs.1023.30.

The stock is showing this spirited run on the bourses on news that in a bulk deal, while Morgan Stanley Asia sold 39.18 lakh shares at Rs.2406.51/share, Diageo’s unit Relay BV bought 19.7 lakh shares at Rs.2400/share.

Our Editor, Mr.SP Tulsian advises holding on to this stock as it is currently the best stock in the FMCG space. He has rightly observed that Diageo will be ramping up their stake in the company to 51% and acquisition of 5% every year is likely to happen over the next 2-3 years. This is going to help bring down the debt of Whyte & Mackay by Rs.7500 crore to around Rs.3000 crore and with Diageo coming in as a promoter, prospects for the stock look bright and he advises one to hold on tight for the next five years.