HSBC spots green shoots of recovery for agri-inputs players; issues flurry of target price hikes

HSBC raised price targets for UPL, PI Industries and Dhanuka Agritech.

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26 Aug, 2025 12:21

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Brokerage firm HSBC is seeing green shoots of recovery for the agri-inputs industry on account of which it has raised price target for several players like UPL, PI Industries and Dhanuka Agritech.

The firm feels that signs of recovery in global demand for major players like UPL and PI Industries sit well for the overall sector. In addition, the brokerage believes higher area under crop sowing and strong rains are likely to moderate growth for agriculture players in Q2.

Further, good rainfall will boost water storage, in turn supporting domestic sales for agri-input players in the second half of FY25, HSBC wrote in a note. Accordingly, the firm expects an overall healthy performance from the sector in FY225.

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Taking it further, HSBC raised the price target for UPL to Rs 600 and for PI Industries to Rs 5,000, while retaining a 'buy' call on both the stocks. It also noted that these two companies have the least exposure to the domestic market, which makes up only 13-18 percent of their total revenue.

Just yesterday, even Morgan Stanley upgraded shares of PI Industries to an 'equal-weight' rating and also raised the price target for the stock by 28 percent to Rs 4,300.

On the other hand, HSBC also raised the price target for Dhanuka Agritech to Rs 2,000 and maintained its 'buy' call on the stock. However, on the flipside, it cut the target price for Bayer Cropscience to Rs 6,300 with a 'hold' call.

HSBC is much more bearish on Rallis India as it retained its 'reduce' call on the stock with a price target of Rs 251.

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