Accumulate UPL; target of Rs 640: Geojit Financial Services

Geojit Financial Services recommended accumulate rating on UPL with a target price of Rs 640 in its research report dated August 21, 2024.

Broker Research

August 22, 2024 / 11:51 IST

Accumulate

26 Aug, 2025 12:21

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Geojit Financial Services research report on UPL

UPL Ltd is a global agriculture solutions company engaged in the agrochemicals and industrial chemicals business with manufacturing sites globally. Through recent expansion, the company has become a leader in global food systems as well. In Q1FY25, UPL’s consolidated revenue grew 1.2% YoY to Rs. 9,067cr, primarily driven by higher sales volumes (+16.0% YoY), offset by decline in prices (-14.0% YoY). EBITDA declined 28.0% YoY to Rs. 1,146cr and margin fell 520bps YoY to 12.6% due to higher cost of materials consumed (+15.0% YoY). The company had a muted Q1 earnings result as price realisations deteriorated. Volume expansion, recovering demand, and launching new products should support the company’s revenue improvements in the long run. Liquidation of high-cost inventory and stabilisation of agrochemical prices are expected to aid the company’s bottom line.

Outlook

Hence, we upgrade our rating on the stock to ACCUMULATE with a revised target price of Rs. 640 based on 15.5x FY26E adjusted EPS.

For all recommendations report, click here