Buy United Spirits With Stoploss Of Rs 1072

UBGStock market analysts are of the view that investors can buy United Spirits Ltd stock to achieve an intraday target of Rs 1119.

According to them, investors can purchase the stock between Rs 1090-1100 with a strict stop loss of Rs 1072.

Shares of the company, on Thursday (Nov 05), closed at Rs 1,090.40 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 26.55 and 40.47 respectively. The share price has seen a 52-week high of Rs 1740 and a low of Rs 428.40 on BSE.

For the three month period ended Sept 2009, United Spirits standalone net profit declined 25.87% to Rs 696 million. Net sales during the period surged 20.57% to Rs 10,875.50 million.

The company's total income during the quarter zoomed 20.52% to Rs 10,909.50 million.

At its meeting held on Oct 23, the authoritative team of directors of the board of directors sanctioned the issue of 17,681,952 shares @ Rs 913.70 per share, which includes a premium of Rs
903.70 per share, aggregating to Rs 16,155,999,542.40.

Consequent to the abovementioned allocation, the company's paid up equity capital surged to Rs 1,255,943,290/- divided into 125,594,329 shares of Rs 10 a share from the company's subsisting paid up capital Rs 1,079,123,770/- divided into 107,912,377 shares of Rs 10 per share.

United Spirits on Oct 21, declared that it has lifted around Rs 16.16 billion via private placement of shares with QIBs and net proceeds would be mainly utilized to pay back arrears.

The company's board at its meeting held on Oct. 20, decided to shut the bid phase by assigning 17.60 million shares, making up 16.4% stake at Rs 913.70 per share to prospective capitalists.