Geojit has given Buy recommendation for UPL with a target price of Rs. 875 in its research report issued on Nov 08, 2021
Geojit’s research report on UPL
UPL Ltd is a global agriculture Solutions Company engaged in the agrochemicals and industrial chemicals business with manufacturing sites across the world. Through recent expansion, the company has become a leader in global food systems as well. Q2FY22 revenue increase of 18.2% YoY as volume drives 15% YoY growth and the remaining by favorable price realization. EBITDA registered 13.1% YoY growth but EBITDA margin shrunk 90bps due to strategic investments made this quarter. Company was able to maintain margins with significant cost pressures in an inflationary environment. The volume growth momentum along with desirable pricing is expected to drive profits for the coming quarters.
Hence, we reiterate our BUY rating on the stock with a revised target price of Rs. 875 based on 15x FY23E adj. EPS.