CMP: 2500

United Spirits Ltd. manufactures and distributes a variety of alcohols and spirits, including whiskey, brandy and rum. The Company's well known brands include "McDowell's No. 1 Whiskey," "McDowell's No. 1 Brandy," "McDowell's Diplomat Whiskey" and "McDowell's Signature Whiskey." United Spirits also manufactures Indian-made foreign liquor brands.

SREI to sell 49 lakh shares of United Spirits in open market. Something similar to what SBI did. Stock can correct over 10%. I normally don't read too much into P/E. But in this case, P/E of over 100 does not look justified for a retail investor. With debt of over 3000 Crores and flat profits for the last 5 years, its trading at a very steep price. Its more of a traders stock. Retail investors should stay away.