Sharekhan is bullish on UPL has recommended buy rating on the stock with a target price of Rs 647 in its research report dated February 07, 2020.
Sharekhan's research report on UPL
We have fine tuned our numbers for FY2020E and FY2021E and introduced FY2022E estimates and believe that the company will be able to deliver revenue and earnings CAGR of 10.0% and 29.5% over FY2020-22E. The management maintains its guidance of revenue growth of 8-10% & EBITDA growth of 16-20% for FY2020E and expects to pare down debt by US$ 500 million by the end of Q4FY2020E. As the new season kicks off, the management expects the inventory levels to normalise by the end of Q4FY2020E resulting in improved operating cash flow position leading to debt reduction.
We have upgraded our rating on UPL Limited (UPL) to BUY with a revised price target of Rs 647/share as the risk-reward matrix turns favourable.
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