Shares of some
United Breweries (UB) group firms have rallied as much as 57 per cent since the beginning of the current financial year, even as the debt-ridden Kingfisher Airline's stock has mostly languished in the recent months.
In all, five companies of Vijay Mallya-led UB Group have outperformed the 30-stock BSE Sensex, where the gain has been less than 6 per cent so far in 2012-13.
Shares of group holding firm
United Breweries Holdings Ltd have shot-up by 57 per cent, while United Spirits skyrocketed 52.17 per cent, mostly on speculations about possible stake sale in the company.
Shares of McDowell Holdings have also surged 47.2 per cent, while United Breweries scrip rose by 16.91 per cent and Mangalore Chemicals & Fertilizers climbed 7.96 per cent.
In contrast, the Sensex has risen 5.82 per cent.
According to market experts, the main driver behind this rally in UB group shares has been speculations about
stake sale in United Spirits to save Kingfisher Airlines.
"Speculation has been rife on an imminent stake sale that kept Mallya-controlled companies' shares on a high spirit at the bourses," CNI Research CMD Kishore Ostwal said.
According to reports,
UB Group is also looking at offloading stake in Whyte & Mackay (W&M).
On the other hand, stocks which have given negative returns this financial year are Kingfisher Airlines and UB Engineering - share prices declined 10.92 per cent and 10.99 per cent, respectively.
Kingfisher's net loss more than doubled to Rs 2,328 crore in 2011-12, from Rs 1,027 crore in the previous year. The airline has a debt of over Rs 7,000 crore.
"UB group stocks are rallying mainly due to stake sale reports and hopes of FDI implementation in aviation which is likely to help debt-ridden Kingfisher," Alex Matthews Research Head Geojit BNP Paribas said.
Late last week, the government allowed 49 per cent
investment by foreign airlines in aviation - a long-awaited move by Kingfisher Airlines to help raise capital by bringing in a strategic partner.
But Unicon Financial Solutions CEO Gajendra Nagpal says the rally is not likely to sustain in the long-run given there is not much steam left which can further fuel rally in these stocks.
With inputs from PTI
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