Motilal Oswal's research report on UPL
UPLL reported muted 4QFY23 revenue growth of 4% YoY, primarily led by decline in post-patented product prices with ramp-up of supply from China as well as lower sales in North America (down 14% YoY). Operating performance deteriorated (down 16% YoY) due to liquidation of high-cost inventory, idle capacity costs (INR2.0-2.5b) to achieve competitive inventory position and unfavorable region mix (rise in share of LATAM). Gross debt/net debt reduced to INR230b/INR169b in FY23 from INR258.7b/ INR189b in FY22 (i.e. net debt reduced by USD440m v/s guidance of USD500m in 3QFY23).
Outlook
Factoring in UPLL’s weak 4QFY23 performance, we cut our FY24E/FY25E earnings by 13%/9%. We reiterate our Neutral rating with a TP of INR750.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
