Buy UPL; target of Rs 820: Anand Rathi

Anand Rathi is bullish on UPL has recommended buy rating on the stock with a target price of Rs 820 in its research report dated November 07, 2025.

Broker Research

November 10, 2025 / 13:28 IST

buy

Anand Rathi's research report on UPL

Beating Consensus estimates and ARe, UPL’s revenue/EBITDA rose 8/40% y/y to Rs120.2/22bn in Q2. It posted Rs4.4bn PAT vs. Rs4.3bn loss in Q1 FY25. It saw demand recovery in Q2 led by volume rising by 7%, despite 2% y/y decline in the prices. The company raised its FY26 EBITDA growth guidance to 12-16% y/y (from 10-14% earlier) with H2 FY26 growth to be mainly driven by volume, while the prices are likely to remain muted. EBITDA growth is likely to be driven by improved operational efficiency. Further, net-debt/EBITDA is targeted at 1.6-1.8x by FY26-end, with significant deleveraging planned in next 18-24 months (value unlocking from business segment’s IPO). We believe, the worst in terms of inventory overhang is largely behind with gradual recovery expected in H2 FY26.

Outlook

Further, we believe growth to be driven by focus on differentiated solutions and product launches leading to improved margin. Thus, we upgrade our rating to BUY on the stock with a revised 12-mth TP of Rs820 (from Rs740 earlier), valuing it at 16x H1 FY28 EPS.

For all recommendations report, click here