UPL Ltd. share price target

Takeaways from Q4FY22: (1) Strong volume growth and market share gains resulted in higher YoY growth of international business; India business grew 62.6% YoY, (2) gross and EBITDA margin were up 369bps and 78bps YoY, respectively, and (3) Europe business grew only 2% YoY due to adverse impact
from Russia-Ukraine conflict.

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...

EBITDA grew 21% to Rs 2,666 crore in Q3 FY22 over Rs 2,209 crore in Q3 FY21. The Q3 FY22 EBITDA improved after in-house manufacturing with backward integration linkages was supported by effective raw material sourcing and overall cost management - keeping the...

Background: UPL Limited, formerly United Phosphorus, is a global post-patent agrochemical company with sales presence in 130+ countries post acquisition of Arysta. It is the frontrunner of thriving Indian crop protection industry by taking rapid strides to clinch greater pie of the global crop protection business. The company has emerged as a complete crop solution provider across various crop types & categories and global market leader in bio-solutions business. It has amplified its market share on global platform from 3.5% in FY15 to 7.7% in FY21 primarily by new product launches & geographic expansion. UPL's investments have facilitated the company to generate 1,023 patents and 12,400+ product registrations worldwide. The company's inorganic growth strategy (40+ acquisitions in last 25 years)...

UPLL reported strong volume growth (at 11% YoY) driven by geographies (except India). It reported better-than-expected earnings on higher sales. Net debt decreased INR5b QoQ and INR2.3b YoY and stood at INR238b in Dec'21. Net working capital (WC) days dipped 9 days YoY to 108 in 9MFY22. Factoring in its 3QFY22 performance, we have increased our FY22E earnings by 4.6%. However, we have reduced our estimates by 3.6% and 4.8% for FY23E and FY24E, respectively, as we assume no repayment of debt in FY22E...

UPL is a global player in the agro-chemicals industry.