United spirits shares fall on CLSA downgrade

Shares in United Spirits fell as much as 3.5 per cent after brokerage CLSA downgraded it to underperform from outperform citing the sharp run-up in the stock in the last one month, dealers said.

The brokerage expects United Spirits to report another weak quarter as it expects January-March earnings to contract 18 per cent year-on-year.

"A sharp 34 per cent Y-o-Y rise in interest costs would further exert pressures and we do not expect any significant deleveraging even in FY13," CLSA said in a note.

At 12:27 p.m., shares were down 2.8 per cent at Rs 696.95.

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