CLSA maintains buy on UPL, target price Rs 720

CLSA has maintained buy rating on UPL with a buy rating in the long term and target price of Rs 720. The stock ended down 2.5% at Rs 563.10 on Wednesday while the BSE Sensex closed 208.43 points (0.50%) down at 41,115.38.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 7817.00 crore, down -1.13% from last quarter sales of Rs 7906.00 crore and up 83.63% from last year same quarter sales of Rs 4257.00 crore. The company has reported net profit after tax of Rs 111.00 crore in the latest quarter.


The company’s top management includes Dr.Reena Ramachandran, Mr.A C Ashar, Mr.Hardeep Singh, Mr.J R Shroff, Mr.Pradeep Goyal, Mr.R D Shroff, Mr.V R Shroff, Mr.Vasant P Gandhi, Mrs.S R Shroff, Ms.Usha Rao Monari. Company has B S R & Co. LLP as its auditors. As on 30-09-2019, the company has a total of 764,022,956 shares outstanding.

Investment Rationale

Its strong positioning along with synergies from the Arysta acquisition makes UPL wellplaced to gain in Latin America and other markets, said CLSA. Over FY20-22, CLSA estimates an CAGR of 8.7% in revenue, 11% in Ebitda and 20% in profit. The stock is attractively valued at15 times FY21earnings and 13 times FY22 earnings, said CLSA.