For 2QFY2016, United Phosphorous (UPL) posted a 4.2% yoy growth in sales to Rs2,729cr. The volume growth during the period was of 13% yoy, while price increases contributed around 2% yoy. The exchange rate on the other hand, impacted adversely by 11% yoy. On the operating front, the gross margins came in at 49.9% V/s 50.5% in 2QFY2015, which led the OPM to come in at 16.5% V/s 16.7% in 2QFY2015. The company posted a 12.3% yoy dip in its PAT for the quarter excluding the extra-ordinaries and profits from associates and subsidiaries. However, a higher share of profitability from associates and subsidiaries has enabled the company posted to post an Adj. PAT of Rs190cr V/s Rs180cr in 2QFY2015, a yoy growth of 5.5%. We maintain our Accumulate rating on the stock with a price target of Rs510. Quarterly highlights: For 2QFY2016, the company posted a 4.2% yoy growth in sales to Rs2,729cr. Its key markets - India and Latin America, posted a 5% and 8% yoy growth, respectively. ROW and USA posted a yoy growth of 12% and 10%, respectively. The only market to decline was Europe, which posted a 10% yoy dip in sales. The volume growth during...