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United Spirits shares fall after Credit Suisse downgrades stock

LiveMint logoLiveMint 15-05-2014 Indulal PM

Mumbai: Shares in United Spirits Ltd fell 1% after Credit Suisse Group AG 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 and Mackay to Emperador Inc., while Diageo Plc has raised its share offer.

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

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

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

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