UPL Ltd.

NSE: UPL | BSE: 512070 | ISIN: INE628A01036 | Industry: Agrochemicals
| Strong Performer, Under Radar
693.6500 -3.30 (-0.47%)
NSE Sep 11, 2025 11:40 AM
Volume: 737.7K
 

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UPL Ltd.
26 Oct 2018
693.65
-0.47%
Motilal Oswal
EBITDA increased 17% YoY expanding 60bp YoY to 19.7% (in-line). PAT increased grew 12% YoY, EBITDA increased 15% YoY (margin up 50bp to 20.1%) and adj. We expect the momentum to continue in 2HFY19, with revenue growth of 12% YoY and margin expansion of 80bp YoY. LATAM is an important geography for UPPL accounting for 41% of overall revenue (v/s 37% in 2QFY18). Management has maintained its growth (10-12%) and margins guidance on account of the holistic growth prospects across geographies. We maintain our revenue/PAT CAGR (FY18-20) estimate of 44%/8%, and continue valuing UPLL at 13x Jun20 EPS (~15% discount to its three-year average trading multiple) on account of (a) highly leveraged balance sheet (due to Arysta acquisition) leading to increased D/E, (b) pressure on return ratios and (c) higher exposure to forex risk. However, with key drivers of growth in place, we maintain our price of INR749 (20% upside).
UPL Ltd. has an average target of 728.33 from 5 brokers.
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