As Diwali is a festival of prosperity and joy but among its ills, it has been observed that some people do practice binge drinking on this auspicious occasion. We take a look at a stock pick of liquor/brewery industry which may give you up to 35% returns.
There is only a day to go for the festival of lights Diwali and everybody has been planning in numerous ways to celebrate the fiesta. As Diwali is a festival of prosperity and joy but among its ills, it has been observed that some people do practice binge drinking on this auspicious occasion. However, there are other ways of celebrating the festival and maybe getting the similar euphoric high without actually getting intoxicated, and at the same time making a lot of money instead of spending it on a bottle of liquor: buy the liquor maker instead. Yes, by owning the shares of select liquor makers, you may end up making a decent amount of money. We take a look at a stock pick of liquor/brewery industry which may give you up to 35% returns.
United Spirits – Indiabulls Ventures
Shares of United Spirits have returned about 28% since the beginning of 2017. In the corresponding period, the key equity indices — Sensex and Nifty — have returned in the range of 22-24% so far. The research and brokerage firm Indiabulls Ventures has recommended a ‘buy’ rating on the shares of United Spirits with a further upside of up to 35% from to from its current market price of Rs 2,369 to a target price of Rs 3,200. “United Spirits in a primary uptrend. Current decline is a good entry point for the next wave upside,” said Indiabulls Ventures.
“United Spirits witnessed a Bull run from 2012 to 2015 in a 5 wave impulse up move which gave 8X returns. Post the top formed in 2015 stock has been in a corrective cycle. Stock has formed a strong base around 1,800 zone and has reversed it falling trend which is a positive sign. Company has gone through adverse govt policies and challenging times on various aspects, however, a lot of negative news is already priced in. Stock has formed classical higher top higher bottom cycle as per Dow theory and it’s a good entry point into the primary uptrend. A new uptrend cycle wave 3/C is expected to unfold which is likely to take the stock much higher. Expecting the stock to test its previous highs of 4,000 on the upside,” according to Indiabulls Ventures.