UPL shares jump 5% on Q3 beat, Investec gives Rs 700 target price

UPL shares rallied 5% to day's high of Rs 636.45 on BSE after reporting a robust Q3 performance citing recovery in agrochemical demand after six consecutive quarters of contraction.

Domestic brokerage firm Investec upgraded UPL shares to buy from sell and also hiked target price to Rs 700 from Rs 450 saying that the outlook is improving while valuations are supportive.

It has increased EBIDTA estimate by 1-3% for FY25-27 and also said UPL should be able to bring down debt level from rights issue, Advanta stake sale and operating cash flow.


Nuvama said it is cutting UPL’s FY25E EPS by 6%, and raising its FY26E/27E EPS by 12%/10% anticipating a likely revival in the demand environment. The brokerage firm has also raised target price to Rs 705 from Rs 590 earlier, valuing the stock at an unchanged 13x on a rollover to Q3FY27E EPS.

"UPL reported revenue growth of 10% YoY led by volume/price/currency growth of 9%/5%/(4)%. Strong volume growth was seen coming from Latam and Europe, whereas margins were bettered by sales of NPP solutions in Europe and Brazil.

Management expects to achieve their business targets (50% YoY EBITDA growth). UPL expects the 3QFY25 exit EBITDA margin of 19.6% to be sustainable as a large part of active ingredient portfolio has seen stabilization," Nuvama said.

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UPL Chairman and Group CEO Jai Shroff said the company is seeing strong bounce back versus last year, with normalization of business, and recovery of volumes and prices.

"This has helped in regaining our contribution margins back to our previous higher levels. Through strong focus, the team has done a commendable job in bringing down the working capital, resulting in a significant reduction of our net debt versus September, 2024. With this strong performance, we are confident of delivering our EBITDA and free cash flow guidance

for the full year," he said.

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