Buy UPL, target price Rs 610: Antique Stock Broking

Antique Stock Broking has maintained buy rating on UPL and revised target price to Rs 610 from Rs 520. Shares of UPL ended down 8.1 per cent at Rs 385.90 on Monday while the BSE Sensex closed 2002.27 points down (-5.94 per cent) at 31,715.35.

UPL Ltd., incorporated in 1985, has a market cap of Rs 29484.51 crore.

Investment Rationale


UPL has reduced net debt by $900 million year-on-year to $2.9 billion in FY20, said Antique. An over-leveraged balance sheet has been the major concern amongst the investors, said Antique. An update on debt will help to re-rate the stock from here on, said Antique.

Financials

For the quarter ended December 31, 2019, the company reported consolidated sales of Rs 8,892 crore, up 13.75 per cent from last quarter sales of Rs 7817.00 crore and up 80.69 per cent from last year same quarter sales of Rs 4921.00 crore. The company reported net profit after tax of Rs 838 crore in the latest quarter.

Promoter/FII Holdings

Promoters held 27.89 per cent stake in the company as of March 31, 2020, while FIIs held 43.50 per cent, DIIs 11.45 per cent and public & others 17.16 per cent.