Upgrades

UPL is well-positioned to deliver a stronger H2FY26, supported by normalization in LATAM demand, robust growth momentum in North America, and margin tailwinds from low-cost inventory and improved product mix.

SCL reported a robust performance in 2Q FY26, driven by strong volume growth and margin expansion. The Company remains optimistic about a gradual recovery in the global agrochemical market, noting that inventories have normalized across distribution channels.

We upgrade our rating from HOLD to BUY on the stock as the current valuations appear attractive considering the company's long-term growth prospects.

Rallis India Q2FY26: Weak topline performance, Margins remain stable Revenues stood at 861 crore, down 7.2% YoY on account of erratic and prolonged rains which impacted field activities and spray applications. The crop care business (88% of the revenues) reported a decline of 3% YoY at 760 crore, as growth in B2B business (14% YoY) was undone by 10% degrowth in B2C business due to weather disruptions. The seeds business (12% of the revenues) reported a decline of 28% YoY, at 101 crore. EBITDA for the quarter stood at 154 crore, down 7% YoY translating into margins of 18%, up ~220 bps QoQ/ flat YoY. EBITDA for the crop care...

UPL Limited has announced an internal realignment involving the integration of its Post Harvest Business (Decco) with the Advanta seed business.

Sharda Cropchem Limited (SCL) reported a 25% y-o-y increase in total revenue for 1Q FY26, reaching Rs 984.8 crore.

Ahead of consensus & our estimates, Sumitomo’s Q1 was robust; revenue/EBITDA/PAT grew 26/36/41% y/y. Domestic revenue up 29% y/y; exports 9% y/y.

Broadly in line with consensus and our estimates, Dhanuka Agritech’s Q1 revenue/EBITDA/PAT grew 7%/16%/14% y/y.

We downgrade our rating from BUY to HOLD on the stock as the current valuations provide limited room for further appreciation.

Healthy, 13% y/y, volume growth and market-share gains in its key regions drove Sharda Cropchem’s Q1 results. Growth improved on the back of better demand scenario particularly in Europe and a near complete destocking across major regions.

Kumiai Chemical Industry (Kumiai) has revised up its H1FY25 revenue guidance by ~9% to JPY96bn from JPY88bn, citing that net sales are expected to exceed the forecast due to advanced shipment to overseas markets in its Agchem business.

Sharda Cropchem Limited (SCL) reported solid growth in 4Q FY25 as revenues increased by 39.4% y-o-y to Rs 1,828.5 crore. This robust quarterly growth was mirrored by a strong overall top-line performance for the entirety of FY25.

Diagnostics business to see strong growth

We maintain our BUY rating on the stock.

? Sharda Cropchem Limited (SCL) reported solid growth in 3Q FY25 as revenues increased by 46.9% y-o-y to Rs 929.3 crore, fuelled by a robust increase in sales volume and a strategic price adjustment. Growth was observed across regions, with Europe and North America exhibiting
strong performance.
? Gross margin expanded by 650 bps y-o-y to 32.7%.

We recommend a BUY rating on the stock with a target price of Rs 1,760/share, implying an upside of 10% from the CMP

Quarterly Update Q2FY25

We upgrade our rating on the stock from HOLD to BUY considering attractive valuations post the recent correction in stock price while long-term growth prospects remain intact.

Revenues stood at Rs. 627 crore, down 10% y-o-y and 5% q-o-q, 12% below our estimates.