Neutral on UPL, target price Rs 574: Motilal Oswal

Motilal Oswal has neutral call on UPL Ltd. with a target price of Rs 574. The current market price of UPL Ltd. is Rs 552.
UPL Ltd., incorporated in the year 1985, is a Large Cap company (having a market cap of Rs 42576.43 Crore) operating in Pesticides/Agro Chemicals sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 9126.00 Crore, up 2.09 % from last quarter Sales of Rs 8939.00 Crore and up 2.63 % from last year same quarter Sales of Rs 8892.00 Crore Company reported net profit after tax of Rs 951.00 Crore in latest quarter.


Investment Rationale
The brokerage maintains FY21E/FY22E/FY23E earnings estimate as adjusted PAT came in line with expectation. Its high debt remains a key concern for the stock

Promoter/FII Holdings
Promoters held 27.9 per cent stake in the company as of Dec 30, 2020, while FIIs held 35.3 per cent, DIIs 16.7 per cent and public and other 20.2 per cent.