 "United Spirits to be one of best consumer stories: Nomura")
Nomura maintains its "buy" rating and target price of Rs 2,200 on United Spirits Ltd saying Diageo Plc's deal to buy a controlling stake in the Indian spirits maker "remains on track" with all regulatory approvals in place.
Nomura says United Spirits "will be one of the best consumer stories over the next two years" on the back of profitability improvement and expectations Diageo will be able to deliver "consistent improvement" on its investment in fiscal 2014.
Diageo is widely expected to gain management control of United Spirits even as its open offer for shareholders, which launches on Wednesday, is seen as unlikely to succeed after the global spirits maker did not raise the offer price.
United Spirits shares were down 1% at 10:13 a.m.