Add UPL, target price Rs 852: ICICI Securities

ICICI Securities has add call on UPL with a target price of Rs 852. The current market price of UPL is Rs 783.95.
Time period given by analyst is one year when UPL Ltd. price can reach defined target.

UPL Ltd., incorporated in the year 1985, is a Large Cap company (having a market cap of Rs 59786.56 Crore) operating in Pesticides/Agro Chemicals sector.


UPL Ltd. key Products/Revenue Segments include Agrochemicals, Other Operating Revenue, Export Incentives, Royalty Income, Sale of services for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 15977.00 Crore, up 40.56 % from last quarter Total Income of Rs 11367.00 Crore and up 24.38 % from last year same quarter Total Income of Rs 12845.00 Crore. Company reported net profit after tax of Rs 1621.00 Crore in latest quarter.

Investment Rationale
The brokerage models UPL to report revenue and PAT CAGR of 9.3% and 18.1%, respectively, over FY22-FY24E, and RoE to move to 18.5% in FY24 from 19.8% in FY22. It remains confident of value creation with RoIC > cost of equity. It maintains ADD rating on the stock with a DCF-based target price of Rs852 (implied P/E 11x of FY24E EPS).

Promoter/FII Holdings
Promoters held 28.45 per cent stake in the company as of 31-Mar-2022, while FIIs owned 35.3 per cent, DIIs 17.8 per cent.