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Buy UPL: target of Rs 930: Sharekhan

Sharekhan is bullish on UPL has recommended buy rating on the stock with a target price of Rs 930 in its research report dated July 01, 2021.

July 02, 2021 / 01:30 PM IST
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Sharekhan's research report on UPL

UPL has carved out a strategic business unit – the Natural Plant Protect (NPP), aiming to double revenue from biosolutions to $700 million by FY24-25. The step is in line with its strategy to increase share of high growth/margin differentiated products & sustainable solutions in overall revenues to 50% by FY2026. Strong R&D pipeline (peak revenue potential of $4-4.5bn) and tie-ups with FMC and Meiji for launch of a new formulations makes us confident that UPL can achieve the higher end of long-term revenue growth guidance of 7-10%. Q1FY22 outlook - Strong mid double-digit growth for India, Latin America and Rest of World while the US and Europe may witness flat-to-moderate growth, with price hikes on cards across regions. Focus on deleveraging balance sheet to continue with a plan to further reduce debt by $500 million in FY2022.


Robust earnings growth outlook (expect a CAGR of 22% in PAT over FY21-FY24E) would help UPL to generate robust cumulative FCF of Rs. 11,642 crore over FY22-FY24 and help further balance sheet deleveraging and drive re-rating Hence, we retain Buy on UPL with a revised price target (PT) of Rs. 930.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Jul 2, 2021 01:30 pm

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