UPL Ltd., incorporated in the year 1985, is a Large Cap company (having a market cap of Rs 34401.15 Crore) operating in Pesticides/Agro Chemicals sector.
Getty ImagesPromoters held 27.9 per cent stake in the company as of June 30, 2020, while FIIs held 40.6 per cent, DIIs 12.9 per cent and public and others 18.7 per cent.
Emkay Global has given buy rating to UPL with a target price of Rs 560. The share price moved down by 5.12 per cent from its previous close of Rs 478.25. The stock’s last traded price is Rs 453.75.
UPL Ltd., incorporated in the year 1985, is a Large Cap company (having a market cap of Rs 34401.15 Crore) operating in Pesticides/Agro Chemicals sector.
Financials For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 7833.00 Crore, down -29.69 % from last quarter Sales of Rs 11141.00 Crore and down -.92 % from last year same quarter Sales of Rs 7906.00 Crore. The Company reported net profit after tax of Rs 658.00 Crore in latest quarter.
Investment Rationale UPL has started recovering from its 5-yr low rolling 1-yr fwd EV/EITDA of 5.0x in Mar-20 to 6.6x today. Valuation remains comfortable as it is still below the 5-yr mean of 10.5x EV/EBITDA. Improving margins (and EBITDA) and faster deleveraging remain the key catalysts for re-rating. The brokerage has maintained Buy and OW position in the EAP with a revised TP of Rs 560. Key risks: adverse weather, regulatory risk, supply-chain disruptions and forex.
Promoter/FII Holdings Promoters held 27.9 per cent stake in the company as of June 30, 2020, while FIIs held 40.6 per cent, DIIs 12.9 per cent and public and others 18.7 per cent.
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