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United Spirits shares fall; Credit Suisse downgrades

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Reuters
Last Updated : May 15 2014 | 11:55 AM IST

Reuters Market Eye - Shares in United Spirits Ltd fall 1 percent after Credit Suisse downgraded the stock to "neutral" from "outperform", citing a lack of immediate triggers.

Credit Suisse says the spirits maker has already agreed to sell Whyte & Mackay to Emperador Inc , while Diageo Pls has raised its share offer.

United Spirits' stock price has fallen 3.2 percent so far this month as of Wednesday's close, underperforming a 6.2 percent gain in the Nifty.

Shares in the spirits maker had a strong run in the previous two years, surging 286 percent in 2012 and 37 percent in 2013, in a rally that peaked with a record high hit on April 15.

Credit Suisse says United Spirits now faces risks such as intensifying competition and state government price controls, as well as broader economic risks such as commodity inflation.

(Reporting by Indulal PM)

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First Published: May 15 2014 | 11:40 AM IST

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