Time period given by analyst is one year when UPL Ltd. price can reach defined target.
UPL Ltd., incorporated in the year 1985, is a Large Cap company (having a market cap of Rs 56554.64 Crore) operating in Pesticides/Agro Chemicals sector.
UPL Ltd. key Products/Revenue Segments include Agrochemicals, Other Operating Revenue, Export Incentives, Sale of services, Royalty Income for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 10614.00 Crore, up 23.95 % from last quarter Total Income of Rs 8563.00 Crore and up 17.75 % from last year same quarter Total Income of Rs 9014.00 Crore. Company reported net profit after tax of Rs 764.00 Crore in latest quarter.
Investment Rationale
The brokerage models steady improvement in return ratios due to (i) reduction in finance costs and higher margins, and (ii) reduction in net working capital days. It models revenue and earnings CAGR of 9.5% and 13.6%, respectively, over FY21-FY24E with RoIC > cost of equity. It maintains ADD rating on the stock with a revised DCF-based target price of Rs 800 implying 12x of FY24E EPS.
Promoter/FII Holdings
Promoters held 27.96 per cent stake in the company as of 30-Sep-2021, while FIIs owned 35.13 per cent, DIIs 17.97 per cent.
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