Add UPL, target price Rs 800: ICICI Securities

ICICI Securities has add call on UPL with a target price of Rs 800. The current market price of UPL is Rs 749.45.


UPL, incorporated in the year 1985, is a Large Cap company (having a market cap of Rs 56209.25 Crore) operating in Pesticides/Agro Chemicals sector.


UPL key Products/Revenue Segments include Agrochemicals, Export Incentives, Sale of services, Other Operating Revenue, Royalty Income for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 13794.00 Crore, up 9.61 % from last quarter Total Income of Rs 12585.00 Crore and up 21.35 % from last year same quarter Total Income of Rs 11367.00 Crore. Company has reported net profit after tax of Rs 1326.00 Crore in latest quarter.

The company’s top management includes Mr.Rajnikant Shroff, Mr.Arun Ashar, Mr.Jaidev Shroff, Mr.Vikram Shroff, Mr.Pradeep Goyal, Dr.Reena Ramachandran, Dr.Vasant Gandhi, Mr.Hardeep Singh. Company has B S R & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 75 Crore shares outstanding.

Investment Rationale
The brokerage models UPL to report revenue and PAT CAGRs of 11.9% and 20.3% respectively over FY22-FY25E, and RoE to move to 19.1% in FY25 from19.8% in FY22. ICICI Securities' remains confident of value creation with RoIC > cost of equity.

Promoter/FII Holdings
Promoters held 30.74 per cent stake in the company as of 31-Dec-2022, while FIIs owned 37.18 per cent, DIIs 16.19 per cent.