CLSA downgrades United Spirits; says risk-reward unfavourable

Last Updated: Mon, Dec 03, 2012 08:52 hrs

CLSA downgraded United Spirits to 'sell' from 'buy' citing unfavourable risk-reward due to sharp rally in stock price ahead of final consummation of the deal with Diageo PLC.

United Spirits rose 69.8 percent in November versus 4.5 percent rise in India's benchmark index.

The research house also says that its interaction with Diageo PLC indicates that while the group is upbeat on the long term potential for United Spirits, in the near term the management and strategy may impact volumes.

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